Indian IT giant Tata Consultancy Services (TCS) has touched a new milestone as the market cap of this company hits Rs 5 lakh crore.

TCS has now become the most valued Indian company by market capitalisation and the second largest private company by profitability.

The shares prices of TCS jumped 2.21 per cent to Rs 2,586.9. The market capitalization of this company on Wendesday soared to Rs 5,06,696 crore or $84.4 billion. Market experts said that the IT firm is still no where when compared to its global peers.

Rakesh Tarway, vice-president and head of equity and derivatives, Motilal Oswal Securities, said that the market cap of TCS is far less than its global competitor IBM, currently valued at nearly $200 billion.

The BSE Sensex gained 121 points on Wednesday to close at a new high of 26,147.3, The gains in IT and banking shares is largely responsible for this advancement.

In the market-cap ranking, TCS is far ahead of second placed Oil & Natural Gas Corp (ONGC) whose market-cap stood at Rs 3,46,582 crore. The next in line are Reliance Industries (RIL) (Rs 3,34,055 crore), ITC (Rs 2,80,454 crore) and Coal India (Rs 242,579 crore).