TCS shares slide over 32% since January on rate fears
TCS shares have been taking a hit lately, dropping another 2% on Monday and reaching ₹2,144.
That adds up to a 12% slide over just four trading sessions, and more than 32% since January.
The main reasons? Rising US bond yields and worries about Federal Reserve rate hikes, which make things tough for IT companies by lowering their value, cutting US tech budgets, and pushing foreign investors to pull out.
Analysts say TCS below moving averages
Analysts say TCS is showing clear signs of weakness: technical indicators are fading, and the stock has slipped below important support levels.
Sudeep Shah from SBI Securities points out it's now under key moving averages, while Harshal Dasani from INVasset PMS warns that unless TCS breaks past ₹2,400 to ₹2,450 convincingly, any rally will likely face selling pressure.
TCS January-March revenue ₹70,698cr profit ₹13,718cr
TCS's recent financials haven't helped either: revenue increased 10% year-on-year to ₹70,698 crore in the January-to-March quarter and net profit rose 12% year-on-year to ₹13,718 crore as well.
With clients tightening spending due to higher interest rates and rising US bond yields (and growing concerns about AI shaking up traditional IT jobs), the company faces some real challenges ahead.