Why TCS stock price is rising

December 4, 2025

Shares of information technology (IT) companies continued to trade higher for the second straight session with the Nifty IT index rising 2% during intraday trading on the National Stock Exchange (NSE) on Thursday.

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

The Nifty IT index emerged as the biggest sectoral gainer, hitting an intraday high of 38,471.60 – the strongest level since July 10, 2025.

Over the past month, the index has risen 9%, significantly outperforming the benchmark index, which rose just 0.16% over the same period.

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

This is what is fueling the rally in TCS.

#1 OpenAI-TCS Partnership Conversations

According to a report in the Economic Times, OpenAI is in advanced talks 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 will include leasing significant data center 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’ strategy to position itself as the world’s leading AI-driven technology services company.

Market sentiment was further boosted after reports suggested that OpenAI could lease at least 500 MW of data center capacity from HyperVault, TCS’s new data center subsidiary, to train and run advanced AI models in India.

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

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

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

As data localization continues to gain 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 partnership.

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

While OpenAI has no plans to inject equity into HyperVault, the potential long-term commercial partnership is seen as a significant boost to TCS’ AI-led growth ambitions.

This development is one of the reasons for the optimism and contributes to the recent share price rise.

#2 Rupee depreciation

Another major factor driving the recent rise in TCS is the sharp depreciation of the Indian rupee. As the currency slipped past the Rs 90 per dollar mark on December 3, 2025, investors shifted their focus to export-oriented IT companies that directly benefit from a weaker rupee.

Since a large portion of TCS’s revenues are generated in US dollars, each depreciation unit increases margins and profit potential when converted into rupees.

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

As a result, the TCS rose around 2% on December 3, reflecting the market’s positive sentiment towards dollar-denominated earnings amid the ongoing currency depreciation.

What now?

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

As indicated by management, the company is already witnessing active interest and inbound inquiries from potential customers, with business planning structured in such a way that capacity is only created when there is strong demand.

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

According to management, the first meaningful contribution from these large-scale projects is expected to begin around FY27-FY28, followed by a stronger increase towards FY28-FY29.

How TCS Stocks Have Performed Recently

TCS is up 1.7% on December 4, 2025. Over the past five days, the company’s shares are up more than 3%.

In the past month, the company’s shares are up more than 8%.

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

About TCS

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

TCS partners with leading companies to drive digital transformation and innovation. The company helps customers develop by adopting and scaling new technologies, such as modern artificial intelligence and cloud solutions.

The company is known for its engineering excellence, high customer service standards and long-standing customer relationships that often span decades.

For more information, please refer to the TCS fact sheet and latest quarterly results.

For a sector overview, read our IT sector report.

On our website you can also compare TCS with industry peers.

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