Rajesh Gopinathan, CEO of India's Tata Consultancy Services. Photo: AFP

India’s biggest software services company Tata Consultancy Services (TCS) has overtaken Accenture to become the most valued information technology company in the world.

The Indian software giant’s share price on Monday rose 1.26% to a record high of 3,345.25 rupees on the Bombay Stock Exchange and its market capitalization zoomed to an all-time high of US$ 169.3 billion. Accenture was valued at $165.7 billion after it slipped 1.6% on Monday on the New York Stock Exchange.

TCS has pipped Accenture twice in the past – once in 2018 and later in October last year. Among other information technology majors, IBM’s market cap stands at $105 billion, followed by Infosys ($77 billion), Cognizant ($42 billion), HCL Technologies ($35 billion) and Wipro ($33 billion).

Tata Consultancy Services shares had staged a rally on the back of better than expected results in the third quarter, which is generally considered a seasonally weak quarter. This was the company’s strongest third-quarter performance in nine years and its net profit and revenue grew 7.2% and 5.4%, respectively, from the year-ago quarter.

It bagged a big deal from Prudential Financial and its total contract value for the December quarter was $6.8 billion. The company announced a salary hike in October and to execute the new deals it had ramped up the hiring of freshers and experienced job seekers.

Tata Consultancy Services also became India’s most valuable company, surpassing Reliance Industries, promoted by the country’s richest man Mukesh Ambani. Reliance Industries shares declined as much as 5% on Monday after lackluster quarterly results.

Founded in 1968, the software unit of Indian conglomerate Tata Group is also the largest private sector employer with a headcount of over 448,000 employees, nearly one-third of them women. TCS became a publicly listed company in 2004.

Indian markets were closed on Tuesday for Republic Day.