Tata Consultancy Services Shares Plummet to 6-Year Low Following 9% Decline

TCS Shares Plummet 9% Amid Global Software Stocks Sell-Off

Tata Consultancy Services (TCS) shares experienced a sharp decline of over 9 percent on Wednesday, as global software stocks came under pressure due to profit-booking following a recent rally.

The decline marked the sharpest single-day fall in the stock since March 12, 2020, when markets witnessed a historic sell-off after the World Health Organisation declared COVID-19 a pandemic. Heavy profit-booking in TCS dragged the Nifty IT index lower, which ended 5.6 percent down. TCS emerged as the biggest laggard among IT stocks and was also the top loser in the Nifty50 benchmark index.

The Nifty IT index recorded its worst session in four months, giving up part of its 7.6 percent gain over the previous three sessions. Investors assessed concerns around AI-led disruption and a subdued earnings outlook against relatively attractive valuations. Since the start of 2026, the index has crashed 23 percent, wiping away Rs 6.6 lakh crore in value.

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The losses in IT stocks were significantly steeper than the decline in the broader market. The Nifty50 closed 0.33 percent lower at 23,405.6, while the BSE Sensex ended down 0.41 percent at 74,346.17. Both benchmark indices had fallen around 1.5 percent during intraday trade.

Nitant Darekar, Research Analyst at Bonanza, attributed the recent rally in IT stocks to sentiment. According to Darekar, the recent decline led by TCS was mainly a case of profit-booking after a sharp relief rally. Fundamentally, TCS remains the weakest link, down more than 23 percent in 2026 amid margin pressure and weak growth visibility. Valuations at about a 30 percent discount to historical P/E levels provide some support, but a sustained re-rating will require a recovery in demand rather than optimism around AI alone.