Why TCS Share Price is Rising

Shares of information technology (IT) companies continued to trade higher for the second consecutive session, with the Nifty IT index climbing 2% in Thursday's intra-day trade on the National Stock Exchange (NSE).

The index has now reached its highest level in more than four months.

The Nifty IT index emerged as the top sectoral gainer, hitting an intra-day high of 38,471.60 - its strongest level since 10 July, 2025.

Over the past month, the index has rallied 9%, sharply outperforming the benchmark index, which gained just 0.16% during the same period.

Amid the renewed focus on IT stocks, one company drawing strong attention on Dalal Street is TCS. The stock rose 1.7% today, marking its second straight day of gains.

Here's what's fuelling the rally in TCS.

#1 OpenAI-TCS Partnership Talks

According to a report in the Economic Times, OpenAI is in advanced discussions with Tata Consultancy Services to build a large-scale AI computing infrastructure in India.

According to the report, the two companies are exploring a broad partnership that includes leasing significant data centre capacity and co-developing agentic AI solutions for global enterprises.

The proposed collaboration is expected to mark the beginning of OpenAI's "Stargate India" chapter and align with TCS's strategy to position itself as the world's leading AI-driven technology services company.

Market sentiment strengthened further after reports suggested that OpenAI may lease at least 500 MW of data centre capacity from HyperVault, TCS's new data centre subsidiary, to train and run advanced AI models within India.

This growing partnership also includes plans to jointly develop sector-specific AI solutions across banking, financial services, retail, consumer goods and manufacturing.

This is a major milestone in TCS's transition toward next-generation computing capabilities, supported by deep ecosystem partnerships and large-scale AI deployment.

Additionally, OpenAI is likely to become the first anchor client for HyperVault's data centres, which are expected to attract hyperscalers, large enterprises, Tata Group companies and government agencies.

As data localisation gains traction, OpenAI's move to offer local data-residency options in markets such as India, Japan, Singapore and South Korea further reinforces the strategic importance of the collaboration.

The report further states that TCS's leadership is currently in the US to finalise the partnership framework and commercial terms, with an announcement expected by year-end.

While OpenAI does not plan to infuse equity into HyperVault, the potential long-term commercial collaboration is seen as a significant boost to TCS's AI-led growth ambitions.

This development is one of the reasons driving optimism and contributing to the recent up-move in the stock.

#2 Rupee Depreciation

Another key factor driving TCS's recent up move is the sharp depreciation of the Indian rupee. As the currency slid past the Rs 90-per-dollar mark on 3 December 2025, investors shifted their focus toward export-oriented IT companies that benefit directly from a weaker rupee.

Since a large portion of TCS's revenue comes in US dollars, every unit of depreciation boosts its margins and earnings potential when converted into rupees.

The rupee has continued its decline, extending losses for a seventh straight session and touching a fresh lifetime low of 90.4370. With a 5.3% year-to-date fall, it is heading for its steepest annual drop since 2022. This sustained weakness has strengthened the case for higher profitability for IT exporters, which in turn has supported buying interest in TCS.

As a result, TCS gained around 2% on 3 December, reflecting the market's positive sentiment toward dollar-denominated revenue earners amid the ongoing currency slide.

What Next?

According to transcript of the Investor Call held on 31 October 2025, TCS appears to be positioning itself for a steady build-out of its data-centre and AI-infrastructure initiatives.

As indicated by the management, the company is already witnessing active interest and inbound enquiries from potential clients, with its business planning structured to ensure that capacity is created only against firm demand.

This disciplined approach reduces execution risk and ensures better utilisation of new infrastructure assets.

According to the leadership, the first meaningful revenue contribution from these large-scale projects is expected to begin around FY27-FY28, followed by a stronger ramp-up toward FY28-FY29.

How shares of TCS have performed recently

TCS jumped 1.7% on 4 December 2025. Over past 5 days the shares of the company have gained over 3%.

In past one month the shares of the company have gained over 8%.

The stock touched its 52-week high of Rs 4,494 on 10 December 2024 and its 52-week low of Rs 2,876.55 on 1 October 2025.

About TCS

TCS is a leading global IT services, consulting, and business solutions organisation, and part of the Tata Group, India's largest multinational conglomerate.

TCS partners with industry-leading companies to drive digital transformation and innovation. The company helps clients evolve by applying and scaling new technologies, like modern Artificial Intelligence and cloud solutions.

The company is recognised for its engineering excellence, high standards of customer service, and long-term client relationships that often span decades.

To know more, check out the TCS fact sheet and latest quarterly results.

For a sector overview, read our IT sector report.

You can also compare TCS with its peers on our website.

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Investors should evaluate the company's fundamentals, corporate governance, and valuations of the stock as key factors when conducting due diligence before making investment decisions.

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