Tata Consultancy Services Declines 5.88%: 7 Key Factors Behind the Weekly Slide

2 February: Positive Start Amid Market Weakness

TCS opened the week on a positive note, gaining 1.42% to close at Rs.3,169.30 despite the Sensex falling 1.03% to 35,814.09. The stock’s volume was moderate at 88,371 shares, indicating selective buying interest. This divergence from the broader market suggested initial resilience, possibly driven by investor confidence in TCS’s fundamentals amid a volatile environment.

3 February: Gains Continue with Strong Market Rally

The upward momentum extended on 3 February, with TCS rising 1.72% to Rs.3,223.70 on a robust volume of 176,445 shares. The Sensex also rebounded strongly, gaining 2.63% to 36,755.96, reflecting broad market optimism. TCS’s outperformance relative to the Sensex on this day highlighted renewed investor interest and positive sentiment within the IT sector.

4 February: Sharp Gap Down and Heavy Selling Pressure

4 February marked a turning point as TCS opened with a significant gap down of 3.15%, closing sharply lower at Rs.2,999.80, down 6.95% on the day. The stock touched an intraday low of Rs.3,031.8, reflecting intense selling pressure amid a sector-wide downturn where the IT - Software sector declined 4.96%. Despite the broader Sensex gaining 0.37%, TCS underperformed markedly, trading below all key moving averages and exhibiting elevated intraday volatility of 132.13%. The surge in derivatives open interest by 15.2% and heavy value trading of ₹58,156.86 lakhs underscored heightened market activity and bearish positioning.

Investor participation remained strong with delivery volumes rising 24.49% to 26.5 lakh shares, indicating active repositioning by institutional players. The stock’s technical indicators, including bearish MACD and RSI trends, signalled sustained downward momentum. This day’s price action highlighted sector-specific headwinds and a cautious market stance towards TCS.

5 February: Mixed Technical Signals Amid High-Value Trading

On 5 February, TCS saw continued high-value trading with a turnover exceeding ₹235 crore and delivery volumes surging 261.55% to 73.91 lakh shares. Despite this, the stock closed marginally lower at Rs.2,992.05, down 0.26%, hovering near its 52-week low of Rs.2,866.60. Technical indicators remained bearish, with the stock trading below all major moving averages and momentum oscillators signalling negative trends. The Mojo Score stood at 51.0 with a Hold rating, reflecting cautious optimism amid ongoing volatility.

The stock marginally outperformed its sector benchmark by 0.26% on the day, while the Sensex declined 0.47%, suggesting selective institutional buying. However, the prevailing technical weakness and proximity to 52-week lows underscored the challenges in regaining upward momentum.

6 February: Continued Downtrend Despite High Liquidity

TCS’s downtrend persisted on 6 February, with the stock closing at Rs.2,941.45, down 1.69% on the day and 5.88% for the week. Trading volumes remained robust at 8,84,110 shares, with a traded value of ₹260.3 crores, placing TCS among the most actively traded stocks by value. The stock traded near its 52-week low, just 2.3% above the bottom, and remained below all key moving averages, signalling ongoing bearish momentum.

Institutional participation showed signs of moderation, with delivery volumes declining 38.08% compared to the five-day average. The IT sector’s decline of 2.00% on the day mirrored TCS’s performance, while the Sensex fell 0.41%. Despite the technical weakness, TCS’s dividend yield of 3.64% and large market capitalisation of ₹10,60,244.37 crore continue to attract investor attention amid volatile conditions.

Daily Price Comparison: TCS vs Sensex (2–6 February 2026)

Key Takeaways

1. Divergent Weekly Performance: TCS’s 5.88% weekly decline contrasted sharply with the Sensex’s 1.51% gain, highlighting stock-specific and sectoral challenges amid a generally positive market backdrop.

2. Sector-Specific Headwinds: The IT - Software sector’s weakness, particularly on 4 February, exerted significant pressure on TCS, which underperformed even its sector peers during the downturn.

3. Technical Weakness: The stock’s position below all major moving averages and bearish momentum indicators such as MACD and RSI signal sustained selling pressure and a challenging technical environment.

4. High Trading Volumes and Institutional Activity: Despite price declines, TCS saw robust trading volumes and elevated delivery volumes, indicating active institutional participation and potential accumulation or repositioning.

5. Elevated Derivatives Activity: A 15.2% surge in open interest on 4 February suggests increased market positioning and possible directional bets amid volatility.

6. Dividend Yield Appeal: The relatively high dividend yield of around 3.6% remains a key attraction for income-focused investors amid price volatility.

7. Cautious Market Sentiment: The Mojo Score of 51.0 and Hold rating reflect a neutral stance, balancing TCS’s fundamental strength against near-term technical and sectoral headwinds.

Conclusion

The week ending 6 February 2026 was marked by a pronounced downtrend for Tata Consultancy Services Ltd., with the stock falling 5.88% amid sector-specific pressures and technical challenges. While the broader Sensex advanced, TCS’s sharp gap down and sustained selling on 4 February set the tone for a cautious trading environment. Robust trading volumes and elevated delivery participation indicate ongoing institutional interest, even as technical indicators signal bearish momentum. The company’s attractive dividend yield and large market capitalisation provide some support, but the stock remains vulnerable until it can reclaim key moving averages and demonstrate sustained price recovery. Investors should closely monitor sector developments and technical signals in the coming weeks to assess potential shifts in momentum.

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