TCS shares plunge over 9% in steepest fall since 2020
TCS shares dropped more than 9% on Wednesday, their sharpest fall since the pandemic crash in 2020.
The slide came after global software stocks cooled off from a recent rally, with investors worried about AI shaking up the industry and TCS's not-so-exciting earnings outlook.
Despite being attractively priced, TCS led losses on both the Nifty IT and Nifty50 indices.
IT sector down 23% since January
The Nifty IT index tumbled 5.6%, giving up part of its recent gains, while Infosys and HCLTech also slipped.
Since January, the IT sector has lost 23% of its value, about ₹6.6 lakh crore gone.
Broader markets felt the pain too: Nifty50 closed down at 23,405.6 and Sensex dipped to 74,346.17.
Analyst Nitant Darekar summed it up: TCS is facing margin pressures and weak growth visibility, which isn't helping its stock price much right now.