Mumbai, July 2, 2025 — Shares of Tata Communications Ltd surged by nearly 4% during Tuesday’s trading session after global investment firm Macquarie initiated coverage on the telecom and digital infrastructure major.
The bullish sentiment reflects renewed investor confidence in the company’s long-term digital growth story and strong fundamentals.
💼 What Macquarie Said
Macquarie initiated coverage with a “Outperform” rating, citing:
Strong revenue visibility from enterprise and digital transformation services
Expansion in cloud, cybersecurity, and global data services
Backing by the Tata Group, which brings both financial muscle and strategic clarity
Attractive valuation relative to global telecom peers
“Tata Communications is well-positioned to benefit from the global shift to hybrid networks and secure digital ecosystems,” Macquarie’s report noted.
📊 Market Reaction
Stock Price Movement: ₹1,892 → ₹1,967 intraday
Volume Spike: Trading volumes were nearly 1.8x the 10-day average
Market Cap Addition: Approx. ₹1,800 crore added in a single session
Investors and institutional buyers responded quickly to the coverage, pushing the stock to its highest level in over 4 months.
📌 What’s Fueling the Momentum?
Key growth triggers for Tata Communications:
Rising demand for enterprise-grade connectivity solutions
Continued investment in international expansion
Focus on recurring revenue streams and debt reduction
Emerging as a global player in the digital backbone space
🧠 Analyst Insight
Market experts believe this could signal the start of a re-rating cycle for Tata Communications, especially if Q2 earnings reinforce the growth narrative.
“Macquarie’s initiation is not just symbolic — it reflects institutional interest picking up in India’s digital infra space,” said a senior analyst at a domestic brokerage.
✅ Conclusion
With Macquarie backing and growing market momentum, Tata Communications appears poised for a stronger market presence in H2 2025. Long-term investors may see this as a signal to re-evaluate positions in the telecom-tech hybrid segment.
FAQs
Q1: Why did Tata Communications’ stock rise today?
A: The stock rose nearly 4% after Macquarie initiated coverage with a bullish outlook.
Q2: What rating did Macquarie give to Tata Communications?
A: “Outperform” with a positive long-term view on digital services and connectivity growth.
Q3: Is Tata Communications a good investment in 2025?
A: It has strong fundamentals and digital growth potential, but investors should assess risk based on their profile.
Q4: What are the main areas Tata Communications is focusing on?
A: Cloud services, global connectivity, cybersecurity, and hybrid network infrastructure.
published on 2nd july
Publisher : SMITA
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