Why is TCS share price falling? Explore the real reasons behind TCS’s decline, from FII selling to sector weakness, and what it means for investors.
If you’ve been tracking the stock market lately, one question might be nagging you: Why is TCS share price falling so sharply despite being India’s most trusted IT giant?
For many Indian investors, Tata Consultancy Services (TCS) has always been a symbol of reliability — a stock you could hold without losing sleep. Yet, in the past year, the company’s share price has plunged over 32%, testing investor patience and shaking confidence.
Is it just market noise? Or are there deeper structural challenges behind this decline? Let’s unpack the reasons step by step.
Global Tariffs and Macroeconomic Pressures
The global economy is like a cricket match — even if one player performs well, the team’s score depends on external conditions like the pitch, weather, and umpiring decisions.
For Indian IT companies, those “external conditions” are global trade policies and tariffs. Recently, U.S. President Donald Trump announced a 100% tariff on branded drugs and a 25% tariff on heavy-duty trucks. While this move wasn’t directly aimed at IT services, it triggered broad risk aversion across global markets.
The ripple effect?
- Indian stock indices fell for the sixth straight day.
- Investors, fearing global slowdown, dumped IT stocks including TCS.
🧠 What You Should Remember
TCS share price is not only influenced by its own performance but also by the mood of global investors. When uncertainty rises, IT stocks are often the first to be punished.
H-1B Visa Uncertainty – The Old Thorn Returns
For years, Indian IT giants like TCS, Infosys, and Wipro have relied heavily on H-1B visas to deploy talent in the U.S., their biggest revenue market.
Although TCS has reduced its dependence, the latest proposed tightening of visa rules rekindled fears. Investors worry about three things:
- Higher costs – Hiring locals in the U.S. is far more expensive than deploying Indian engineers.
- Project delays – Limited access to skilled personnel can slow down deliveries.
- Growth impact – If staffing flexibility reduces, so do growth projections in government and consulting contracts.
Think of it like running a cricket team but suddenly being told you can’t field your star overseas players — the bench strength matters, but performance will be questioned.
🧠 What You Should Remember
Even if the direct financial hit is limited, perception of risk drives stock prices. For TCS, H-1B uncertainties are more about investor fear than actual damage — but fear is enough to drag prices down.
FII Selling – When the Big Money Walks Away
Foreign Institutional Investors (FIIs) are like the power hitters in a T20 match — when they leave the crease, the game changes.
After a phase of consistent buying, FIIs began trimming their stakes in TCS from 12% in March 2025 to 11.5% in June 2025.
Why does this matter?
- FII flows influence sentiment – When they sell, retail investors often follow.
- Liquidity pressure – Large-scale selling creates downward momentum in stock prices.
- Perception of risk-off mode – FIIs moving out signals caution, making others hesitant to enter.
🧠 What You Should Remember
Stock prices aren’t just about numbers; they’re also about who is buying and who is selling. FII exits create a self-fulfilling cycle of decline.
Sector Overhang – The Accenture Effect
Here’s where things get tricky. Even if TCS performs well, the entire IT sector’s outlook matters.
Accenture’s recent results showed muted growth and cautious commentary, which spooked investors. Since Accenture is often seen as a bellwether for IT demand, analysts assume Indian IT companies might face the same pressure.
Result?
- Infosys, Wipro, Tech Mahindra, and TCS all fell together.
- Over ₹2 lakh crore in market cap was wiped out from Indian IT stocks in six sessions.
This is like when the Indian cricket team performs poorly in one series — even the top players’ reputations take a hit until the team bounces back.
🧠 What You Should Remember
TCS is not an isolated stock; it moves with its peers. Sector sentiment often outweighs company-specific fundamentals in the short term.
Technical Pressure – Oversold but Fragile
Charts tell stories too. As of Friday, TCS’s Relative Strength Index (RSI) slipped below 45, entering oversold territory.
Why does this matter?
- Traders exit faster when a stock shows weak technicals.
- Momentum funds sell automatically when certain levels break.
- Even long-term investors wait for stability before adding more.
🧠 What You Should Remember
A weak technical setup can exaggerate fundamental concerns, dragging prices further than justified.
TCS’s Long-Term Strategy – AI and Beyond
Now, it’s not all doom and gloom. While the short-term looks rough, TCS is not a sinking ship. In fact, it is reimagining its future around Artificial Intelligence (AI).
Some key moves:
- AI + Human teams – Building intelligent agents to work alongside human employees.
- Energy platform – AI-driven tools to cut client costs and emissions.
- Global partnerships – Collaborating with hardware companies, tech innovators, and startups.
This reminds me of Indian railways modernising — slow at first, but once the transformation gains steam, the journey feels unstoppable.
🧠 What You Should Remember
Short-term pain doesn’t erase TCS’s long-term strength. Its investment in AI, cloud, and digital transformation gives it resilience.
TCS Share Price Performance – The Numbers
- Last 5 trading sessions: Down 8.5%
- Last 1 year: Down 32%
- 52-week high: ₹4,494 (Dec 2024)
- 52-week low: ₹2,892 (Sept 2025)
For context, that’s like losing a cricket series 3-0 after dominating the year before. Confidence takes time to rebuild.
Should Investors Panic or Stay Put?
Here’s the million-rupee question: What should retail investors do now?
Consider these points:
- If you’re a short-term trader, caution is key. The trend remains negative, and trying to “catch the bottom” can be risky.
- If you’re a long-term investor, review fundamentals. TCS’s balance sheet, client base, and strategy remain strong.
- Avoid blind panic — corrections often create opportunities.
Think of it as waiting for the monsoon. You can’t control when the rains arrive, but you can prepare your soil so that when they do, your crops flourish.
🧠 What You Should Remember
Markets reward patience. TCS may be falling today, but long-term investors know the Tata brand rarely lets them down.
📣 Conclusion: The Bigger Picture
TCS’s share price is falling due to a cocktail of global uncertainties, FII exits, sector weakness, and short-term technical pressures. Yet, beneath the storm lies a company investing aggressively in the technologies of tomorrow.
The key for investors is balance — don’t ignore the risks, but also don’t lose sight of the long-term story.
👉 What’s your view? Do you see this correction as a danger signal or a buying opportunity? Share your thoughts in the comments — your perspective may help other investors too.
