There was a huge fall in the shares of Tata Consultancy Services (TCS), one of the country’s largest companies in the IT sector, on Wednesday. During trading, the company’s shares fell by more than 9% to Rs 2,224.80. This is considered to be the biggest one-day fall for TCS after the Covid-19 market crisis of March 2020.
This sharp decline affected the entire IT sector. Its negative impact was also seen on Nifty IT index and major benchmark indices Sensex and Nifty. TCS is among the largest companies in the country in terms of market capitalization, hence the huge fall in its shares had an impact on the broader market as well.
Big shock after recent rise
Interestingly, this decline has come at a time when IT stocks had seen a good rise in recent times. On Tuesday, the Nifty IT index had jumped more than 4%, which was its biggest single-day gain since May 2026.
The IT index had gained about 8% in the last three trading sessions, while the Nifty 50 had declined by about 2% in the same period. TCS shares had also increased by about 8% in two days till Tuesday, but Wednesday’s selloff wiped out this entire gain.
Technical signals are raising concerns
According to Sudeep Shah, Head of Technical Research, SBI Securities, TCS faced strong resistance at Rs 2,600-2,605 levels. This level was around the company’s 100-day exponential moving average (EMA). After this, sharp selling in the shares started.
He said that momentum indicators like RSI are also weakening, which indicates that the bullishness of the stock is decreasing. Apart from this, the stock has slipped below important moving average levels, due to which the technical picture looks weak.
Rs 2,200 level will be important
Harshal Dasani, Business Head, INVasset PMS, believes that now the level of Rs 2,206, which is also the 52-week low of the stock, is very important for TCS. If the stock closes below this level then the decline may increase further.
According to experts, on the upside the range of Rs 2,400 to Rs 2,450 has become a strong resistance. Unless the stock strongly crosses this range, it will be difficult to expect any major recovery.
Although TCS is still considered a strong and reliable company, slow IT demand, increasing competition from AI and weak growth outlook are currently raising investors’ concerns. In such a situation, the market will keep an eye on the movement of the stock in the coming days.
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