TCS Shares Fall 2%, Marking a 12% Drop Over Four Consecutive Sessions—Exploring the Causes Behind the Decline.
Shares of Tata Consultancy Services (TCS), India’s largest IT services provider, experienced a decline of 2% to an intraday low of Rs 2,144 on the Bombay Stock Exchange. This decline comes amid rising U.S. bond yields, which have rekindled fears that the Federal Reserve may increase interest rates later this year. TCS’s stock has now decreased by 12% over the past four trading sessions, reflecting broader market concerns. The general sentiment in the market indicates that higher U.S. bond yields and expectations of a tighter monetary policy could hinder the performance of Indian IT stocks by compressing valuations and potentially curtailing technology spending by U.S. clients. This environment often leads companies to focus on cost-cutting measures rather than expansionary IT investments, with a further risk of foreign investor outflows from emerging markets.
The recent performance of TCS also follows a brief relief rally in the IT sector, which has faced considerable pressure throughout 2026 due to apprehensions regarding the disruptive potential of advancements in artificial intelligence on traditional software service models. The prevailing bearish trend has led to a recommendation to avoid TCS shares for the time being, according to Sudeep Shah, Vice President and Head of Technical & Derivatives Research at SBI Securities. Weaker momentum indicators, including a declining RSI after approaching the 60 level, further indicate a loss of bullish strength. The stock’s position below key short- and long-term moving averages compounds the bearish outlook.
Market analysts identify critical technical levels to monitor, with Harshal Dasani suggesting that the stock is now testing a potential breakdown following a rapid depreciation after its prior rebound. The recent 9% decline, contrasted against a 6.53% rebound, highlights that the previous recovery may have been a dead-cat bounce rather than a genuine return of buyer interest. Significant resistance is seen in the Rs 2,400-2,450 range, where previous recovery attempts have stalled. Until TCS manages to reclaim this zone with substantive trading volume, the stock is likely to encounter selling pressure on any attempted rallies.
Year-to-date, TCS shares have decreased by over 32%, with a 37% decline in the past year. For the fourth quarter, TCS reported a 12% year-on-year increase in consolidated net profit at Rs 13,718 crore, while revenue from operations rose by 10% YoY to Rs 70,698 crore. Despite securing three large deals that brought total contract value to $12 billion for the period, the company’s operational performance and overall growth context remains under scrutiny, as concerns regarding valuation and market sentiment continue to overshadow financial results.
Source: The Economic Times
(Expert Note: This report was prepared by the Wealthova team.)