Shares of Tata Communications rallied sharply on Friday, surging as much as 14.8% to ₹1,948 on the National Stock Exchange of India (NSE), as investors cheered expectations of the company emerging as a key beneficiary of Tata Consultancy Services (TCS)’ ambitious plan to build 1 GW of AI-driven data centre capacity over the next five to seven years. The rally also pushed the stock’s six-session gains to nearly 21%.
The surge was supported by strong trading volumes, with 35.86 lakh shares changing hands on the NSE, generating a turnover of ₹657.42 crore. On the BSE, almost 3 lakh shares were traded by noon — the highest in nearly two months and well above the 20-day average of 65,000 shares. At the end of the session, Tata Communications’ market capitalisation stood at ₹53,722.50 crore, underscoring rising investor confidence in the large-cap telecom and cloud services provider.
Investor enthusiasm has also been buoyed by the fact that Rakesh Jhunjhunwala’s family office holds a 1.58% stake in the company, further fuelling retail and institutional participation.
Technicals flash green
From a technical standpoint, Tata Communications is displaying strong bullish undertones. The stock is trading above all eight of its key simple moving averages (5-day, 10-day, 20-day, 30-day, 50-day, 100-day, 150-day, and 200-day SMAs), signalling sustained momentum across short to long-term charts.
The Relative Strength Index (RSI) stands at 62.9, indicating the stock is in a healthy zone — neither overbought nor oversold. Meanwhile, the Moving Average Convergence Divergence (MACD) at 10.1 remains comfortably above the centre and signal lines, reinforcing the ongoing uptrend.
Synergies with Tata Group fuel sentiment
The rally in Tata Communications comes in the wake of TCS’ announcement of a significant investment in AI-powered data centre capacity. Market participants believe Tata Communications, with its extensive global data connectivity backbone and cloud infrastructure, is strategically positioned to play a pivotal role in the Tata Group’s AI ecosystem.
Analysts say the company could see a meaningful uptick in its DC-to-DC (data centre-to-data centre) connectivity business, aligning seamlessly with its existing global data solutions portfolio. TCS management, during its Q2 earnings call, hinted at leveraging synergies across Tata Group entities, which could give Tata Communications a significant operational edge in capturing a share of the AI infrastructure opportunity.
