By Admin 
Tcs share falls: The country’s leading IT company Tata Consultancy Services (TCS) has been under heavy pressure for the last few days. The company’s stock reached a 52 -week low of Rs 2,892 on 26 September. In the last 5 days, TCS shares have fallen by 4.65%, while it has broken up to 6.72% in a month.
Why are TCS shares breaking?
In the last one year, about one-third of the value of TCS shares has disappeared. The biggest reason for this is-a large number of sorted by the company and the fear of the employees due to this.
On Monday, the company’s market cap decreased to Rs 10.47 lakh crore. In just one year, investors have suffered a loss of about 4.34 lakh crore rupees. From January to December, the company’s shares have declined by 29.58% and 33% on an annual basis.
The reason for fear among investors
About two months ago, TCS CEO K.K. Kirtiivasan had said that the company is going to reduce about 2% of its total workforce. However, employees and organizations say that the actual figure is much more than this. It is believed that the number of employees extracted from the company can be more than 30,000.
In addition, global demand reduction, increase in H1B visa fees in the US, and the use of rapidly growing AI (Artificial Intelligence) have negatively affected both the company’s business and the perception of investors.
It is worth noting that TCS was once counted among the selected companies, whose shares in whose shares used to get double returns in just 6 months. But the current situation has increased the concern of investors.
Advice for investors
- Do not panic and sell – even though there is loss in the short term, companies like TCS are known to give stable returns in the long term.
- Keep diversification in the portfolio – not only depend on the IT sector, but also invest in sectors like banking, pharma, FMCG and Auto.
- Adopt Long Term View – Due to AI and digital transformation in the IT sector, new growth will remain in the next few years.
- Take expert advice – It would be better to consult a financial advisor before taking a big decision.
Also read: Gold on new record again, biggest jump in September during the last 14 years, know what is the reason
Disclaimer: (The information provided here is being given only for information. It is necessary to tell here that the investment in the market is subject to risks. Always consult expert before investing as an investor. Abplive.com is never advised to invest money here.)