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TCS share price remains flat; $1.5 billion deal fails to impress market movers

Shares of Tata Consultancy Service remained largely flat as price inched up 0.60 per cent to trade at Rs 2,116, even after the information technology giant bagged a mammoth $1.5 billion deal with pharmacy retailer Walgreens Boots Alliance.

TCS share price remains flat; $1.5 billion deal fails to impress market movers

Shares of Tata Consultancy Service (TCS) remained largely flat as price inched up 0.60 per cent to trade at Rs 2,116, even after the information technology giant bagged a mammoth $1.5 billion deal with US-based wholesale pharmacy retailer Walgreens Boots Alliance (WBA). The share price of TCS opened at Rs 2,129 on Tuesday after closing at Rs 2,102 on Monday. TCS in a press release said that the strategic partnership between the companies is being expanded with the aim to advance WBA’s transformation of its global IT function. TCS will be launching a new operating model for WBA that is expected to enable WBA to accelerate its digitisation program.

The move is expected to help the US-based company to reduce its cost base. The timeline for the deal is over a ten-year period. TCS in the quarter ended December 31 made a profit of Rs 6,709 crore from its retail business. “Following a period of transition, TCS will provide run and operational managed services, including application maintenance and support, infrastructure and security operations,” TCS said in the press release. “The TCS approach will blend artificial intelligence, machine learning, and advanced software engineering to enhance operational resilience and boost productivity,” it said.

WBA with a presence in more than 25 countries, is aiming to cut costs with a revamped technology support. WBA’s strategic priority is to “save to invest to grow”, according to the press release. TCS on Monday also announced that the company has been named the ‘Numer 1 Top Employer’ in the United Kingdom by the Top Employers Institute. TCS employs people from 54 nationalities at its UK facilities of which women make up 28 per cent. “As one of the largest digital employers in the UK, we continue to nurture and invest in the development of our people by equipping them with the very latest, skills and expertise in the industry,” said Amit Kapur, Country Head, TCS UK ad Ireland.

However, all these factors failed to impress market movers as TCS even after opening at a higher point than yesterday’s closing failed to make large gains. Meanwhile, BSE Sensex was up 690.84 or 1.73 per cent at 40,563 points shedding losses made on Saturday after the Union Budget was presented. Nifty 50, on the other hand, was up by 206 or 1.76 per cent sitting just above the 11,914.

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