New Delhi: Shares of Tata Consultancy Services Ltd ended 3% lower from their day's high on sharp selling in the last half an hour of trade as the Shapoorji Pallonji Group sold some more shares of the company.
Earlier this month, the group had sold 1.99 million shares of the company, or a quarter of its stake, for Rs 4 billion to repay some of its debt. The group is reported to have around 5.4 million shares of TCS.
The group has sold the shares to "strengthen" its balance sheet, CNBC-TV18 exclusively reported.
More than seven mln shares of the software major exchanged hands on the NSE today, which is sharply higher than its average volume of 1.64 million shares.
As per market buzz, close to two mln shares are likely to have been sold by the Shapoorji Pallonji group today, for about Rs 4 billion. According to data, several large deals for the company's shares were struck, especially after 1500 IST, between Rs 1,988-2,072.
Some selling pressure in the shares could have also been on caution ahead of the results of the general elections in the UK, which is seen as being crucial for the country's impending exit from the European Union.
Investors are hopeful that Prime Minister Boris Johnson's Conservative Party can secure enough seats in the elections as it would aid in passing Johnson's Brexit plan agreed with the EU.
Europe is the second largest market for TCS after the US, and the company has often said that uncertainty around Brexit was impacting decision-making from large banks in the region.
Shares of Tata Consultancy Services today closed at Rs 2,020.90 on the National Stock Exchange (NSE), down more than 1% from the previous close.
