TCS Share Crash: Shares of Tata Consultancy Services (TCS), one of the largest IT companies, fell by more than 8% on Wednesday. This fall is the biggest fall in the company’s shares in a single day after the huge fall during the Covid-19 pandemic in March 2020.

TCS shares closed at Rs 2,241.70 on the National Stock Exchange (NSE). Earlier, the company’s shares had seen an increase of about 9% during the last two business sessions, but Wednesday’s selloff has wiped out this entire increase.

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Impact of decline on IT sector
This decline in TCS is affecting the entire IT sector. Due to selling in IT shares, pressure was also seen on Sensex and Nifty. On Tuesday, the Nifty IT index had registered a rise of more than 4%, which was its biggest one-day gain since May 2026.

What did the experts say?
According to Economic Times, experts say that TCS faced strong resistance at the level of Rs 2,600 to Rs 2,605, after which there was a sharp fall in the stock. Talking about this, SBI Securities technical analyst Sudeep Shah says, ‘The stock has slipped below several important technical levels, which is a sign of weakness. The level of Rs 2,210 to Rs 2,200 is an important support and if it goes below this level, the decline may become sharper.

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At the same time, Harshal Dasani, Business Head of INVasset PMS, believes that the recent rise was only a temporary surge. The market is now reevaluating the shares keeping in mind the slow growth of the IT sector, increasing competition from AI and the current valuations.

investors’ eyes
Let us tell you that now the eyes of investors will be on TCS’s 52-week low of Rs 2,206. If the stock closes below this level, further weakness may be seen. At present, the range of Rs 2,400 to Rs 2,450 is being considered as the main obstacle.

The effect of the ongoing war in the Middle East is being seen everywhere. Due to which recession is being seen all over the world. Meanwhile, the country’s largest IT company TCS (Tata Consultancy Services) has decided to give a big gift to its employees. The company has recently announced that it is going to increase the salary of its employees. That means this time the company is going to give ‘double digit’ increment to its employees.

Employees got increment
TCS has recently announced that it will increase the salaries of its employees across all job roles and grades. This increment will be applicable from April 1, 2026. This announcement has come after the company’s fourth quarter (Q4) results. In which TCS has registered an increase of 29 percent in profit. This step has been taken at a time when the demand for salary hike, recruitment and jobs in IT companies is being closely monitored.

The company confirmed
It has been told by the company that the company is implementing the annual salary increment from April 1. He also said that in the fourth quarter, the company has further strengthened its team through experienced talent and campus hiring. The company’s priority now is to create an ‘AI first culture’, so that employees are fully prepared for future needs and AI skills.

About the company
At the end of fiscal year 2026, TCS had 584,519 employees. The company also said that the total number of employees increased by more than 2,000 in the March quarter. Apart from this, the number of people leaving the job has also increased from 13.5 percent to 13.7 percent. Although this is a minor increase, which does not make much difference.

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Tcs tent share falls: Trent and TCS are both prestigious companies of Tata Group. But in 2025, the shares of these two have fallen by more than 25 percent on the Nifty-50. While the shares of IT company TCS declined by 25 percent, Tata Group’s retail company Trent’s shares have come down by about 30 percent. Trent company operates brands like ‘Judio’ and ‘Westset’.

After all, why did these Tata companies decline?

In fact, the stock of Tata Group’s IT company TCS fell to about 55 percent even during the 2008 global economic recession. However, it is believed that TCS share doubles investors’ money in five years. In the past years, TCS has also given a return of about 800 percent. But the problems of the present time are affecting the entire IT sector.

One of the main reasons is that now it has become difficult for companies to get new projects due to the increasing influence of Artificial Intelligence (AI) and the cuts in expenses by clients in the US. Apart from this, TCS has recently decided to lay off around 12,000 employees. The quarterly results of the recently announced company have also been weaker than expectations, which has increased the disappointment of investors.

TCS reduced target price

Brokerage firm Elar Capital has now reduced the target price of TCS from Rs 3820 to Rs 3780. He says that both the income and profits of the company are under pressure. At the same time, Goldman Sachs has also downgosed the rating of TCS. However, TCS management says that in the financial year 2025-26, performance in international markets is expected to be better than 2024-25. Along with this, if the situation improves, then the results of the second quarter can also be strong.

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.)

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