Tata Consultancy Services Ltd. Falls 8.48%: 5 Key Factors Behind the Sharp Decline

9 February 2026: Modest Gain Amid Strong Market Rally

On Monday, 9 February, TCS closed at Rs.2,947.10, up 0.19% from the previous close, while the Sensex surged 1.04% to 37,113.23. The stock’s modest gain contrasted with the broader market’s strong rally, reflecting cautious investor sentiment. Volume was relatively low at 64,908 shares, indicating limited participation despite the positive price movement.

10 February 2026: Robust Value Trading and Outperformance

TCS saw one of the highest value turnovers on 10 February, with ₹1,779.85 crores traded and a volume of 468,333 shares. The stock gained 1.26% to close at Rs.2,984.25, outperforming the Sensex’s 0.25% rise. Institutional interest was evident, although delivery volumes declined by 45.36% compared to the five-day average, suggesting a shift towards short-term trading. Despite trading near its 52-week low, TCS demonstrated relative strength, supported by a dividend yield of 3.7% and a Mojo Grade upgrade to ‘Hold’.

11 February 2026: Sharp Reversal and Price Decline

On 11 February, TCS reversed gains and closed sharply lower at Rs.2,909.40, down 2.51%. The stock underperformed the Sensex, which rose 0.13%. Volume was moderate at 149,418 shares. This marked the beginning of a sustained downtrend, with the stock trading below all key moving averages, signalling bearish momentum. Delivery volumes remained subdued, reflecting cautious investor participation.

12 February 2026: New 52-Week Low Amid Heavy Selling Pressure

TCS’s decline accelerated on 12 February, hitting a new 52-week low of Rs.2,780. The stock closed at Rs.2,751.90, down 5.41%, significantly underperforming the IT - Software sector’s 3.82% fall and the Sensex’s 0.56% decline. Trading volume surged to 715,354 shares with a traded value of ₹653.85 crores, highlighting intense selling interest. Intraday volatility was elevated at 44.9%, reflecting heightened uncertainty. Despite the price weakness, TCS maintained a dividend yield of 3.75% and a market capitalisation of ₹10,52,646 crore. Institutional investors appeared to reduce exposure, with delivery volumes down 30.47% from the five-day average.

13 February 2026: Significant Gap Down and Fresh 52-Week Low

The week culminated in a dramatic session on 13 February, with TCS opening sharply lower at Rs.2,579, a 6.28% gap down from the previous close. The stock hit an intraday low of Rs.2,579, marking its lowest level in a year, and closed at Rs.2,692.15, down 2.17% on the day and 8.48% for the week. Volume surged to 796,863 shares with a traded value of ₹947.45 crores, underscoring heavy investor activity amid selling pressure. Intraday volatility peaked at 74.21%, reflecting extreme price swings. The stock underperformed both the IT sector and the Sensex, which declined 2.82% and 0.90% respectively. Technical indicators remained bearish, with TCS trading below all major moving averages and a Mojo Grade of ‘Hold’.

Daily Price Comparison: TCS vs Sensex (9-13 Feb 2026)

Key Takeaways

1. Sustained Downtrend and Technical Weakness: TCS’s stock price declined 8.48% over the week, underperforming the Sensex by 7.94%. The stock traded below all major moving averages throughout, signalling persistent bearish momentum.

2. Heavy Trading Volumes Amid Price Declines: Despite the price weakness, trading volumes and value turnover surged, particularly on 12 and 13 February, indicating active participation from institutional and retail investors amid volatile conditions.

3. Multiple 52-Week Lows: The stock hit fresh 52-week lows twice during the week, at Rs.2,780 on 12 February and Rs.2,579 on 13 February, reflecting significant selling pressure and negative market sentiment.

4. Dividend Yield and Market Capitalisation Remain Attractive: TCS continues to offer a dividend yield near 3.75%, which may appeal to income-focused investors despite the price weakness. The company’s market capitalisation remains robust at over ₹9.95 lakh crore.

5. Mixed Signals from Mojo Score and Institutional Activity: The Mojo Grade was upgraded to ‘Hold’ from ‘Sell’ in April 2025, reflecting cautious optimism. However, delivery volumes showed fluctuations, with declines midweek followed by a surge on 13 February, indicating shifting investor strategies.

Conclusion

The week ending 13 February 2026 was challenging for Tata Consultancy Services Ltd., with the stock enduring a sharp 8.48% decline amid broader market volatility and sectoral pressures. Despite robust trading volumes and institutional interest, the stock’s technical indicators remain bearish, with multiple 52-week lows signalling sustained selling pressure. While the dividend yield and market capitalisation continue to offer some stability, the prevailing downtrend and underperformance relative to the Sensex highlight the cautious environment surrounding TCS shares. Investors and market participants will be closely watching for signs of technical support or fundamental catalysts to arrest the decline in the coming weeks.

Unlock special upgrade rates for a limited period. Start Saving Now →