ICICI Bank overtakes TCS to become India’s fifth most valuable company

ICICI Bank surpassed Tata Consultancy Services (TCS) in market capitalisation on 12 February to become the fifth most valuable listed company in India, amid continued weakness in technology stocks.

Shares of the private sector lender rose nearly 2 per cent during the session, lifting its market value to about Rs 10.2 lakh crore. In contrast, TCS declined around 5 per cent, dragging its market capitalisation down to roughly Rs 9.99 lakh crore.

It is the first time since December 2020 that the IT giant’s valuation has fallen below the Rs 10 lakh crore mark.

The reshuffle in rankings follows a similar move a day earlier, when State Bank of India (SBI) overtook TCS to claim the fourth position among India’s most valuable firms. Reliance Industries continues to top the list with a market capitalisation of Rs 19.7 lakh crore, followed by HDFC Bank and Bharti Airtel.

Technology stocks have been under pressure amid a broader global sell-off linked to concerns about artificial intelligence-driven disruption. TCS was among the worst performers in the sector, tracking losses in US technology shares.

Investor sentiment remained cautious despite stronger-than-expected US employment data for January. The American economy added more jobs than anticipated and the unemployment rate eased to 4.3 per cent, signalling resilience in the labour market.

While such figures could provide the US Federal Reserve with leeway to keep interest rates unchanged as it assesses inflation trends, economists noted that job gains were heavily concentrated in the healthcare and social services sectors.

According to analysts cited in international reports, broader labour market indicators suggest hiring remains subdued outside specific industries. Christopher Rupkey, chief economist at FWDBONDS, observed that employment growth was largely confined to healthcare, social assistance and certain specialised construction roles, some linked to AI-related infrastructure.

He cautioned that the data offered limited reassurance about the overall strength of the economy, suggesting that job opportunities remain scarce across many sectors.

The pressure on global technology stocks has weighed on Indian IT majors in recent sessions, contributing to the shift in market capitalisation rankings among the country’s leading companies.

With agency input