Shares of Tata Communications Ltd surged up to 15% to ₹1,948 on Friday, ranking among the top gainers on the NSE. The rally, driven by heavy investor activity, marked a 21% rise over the past six trading sessions, fueled by renewed optimism surrounding the Tata Group’s digital and AI ambitions.
The sharp rise followed Tata Consultancy Services (TCS) unveiling its plan to build 1 gigawatt (GW) of AI data centre capacity over the next five to seven years. Market experts said Tata Communications is expected to play a crucial role in this massive expansion by providing data centre-to-data centre (DC-to-DC) connectivity essential for TCS’s AI infrastructure.
Analysts highlighted that Tata Communications already provides enterprise and cloud connectivity solutions, making it a natural beneficiary of the group’s AI-led growth. Technically, the stock is trading above all eight key simple moving averages (SMAs)—a strong bullish signal indicating sustained investor confidence.
Meanwhile, TCS shares fell nearly 2% on Friday after posting weaker-than-expected Q2 results. However, optimism about its AI-led transformation spilled over to other Tata Group companies, particularly Tata Communications.
As of 3:17 PM, Tata Communications was trading 9.8% higher at ₹1,864.5, with a market capitalisation of ₹53,722 crore, reflecting robust investor sentiment in the telecom and cloud solutions major.
