TCS slumps as BofA-ML downgrades stock

NEW DELHI: Shares of Tata Consultancy Services, India’s largest firm by market value, ended 2.93 per cent lower on Monday after investment banking firm Bank of America-Meryll Lynch downgraded it.

BofA-ML downgraded TCS to ‘underperform’ from ‘buy’ rating, cutting its target price to Rs 2,450 from Rs 2,750.

Reacting to the downgrade, the scrip fell 2.79 per cent to hit a low of Rs 2,498.85 on the BSE. The stock has gained 3 per cent in the year so far.

“We downgrade TCS on financial services exposure and recent outperformance,” BofA-ML said in a note to clients.