Intraday Price Movement and Market Context
On the day in question, TCS’s share price fell sharply, closing near its intraday low at ₹2,581, down 3.21% from the prior session. This decline places the stock just 0.42% above its 52-week low of ₹2,579, signalling sustained weakness. The stock’s fall was in line with the Computers - Software & Consulting sector, which itself declined by 3.06%, yet it notably underperformed the Sensex, which dropped 0.96% to close at 82,497.30 points.
The Sensex opened 242.12 points lower and extended losses throughout the session, ending down 555.24 points. Despite this, the index remains 4.44% below its 52-week high of 86,159.02, indicating some resilience in the broader market compared to TCS’s sharper decline.
Technical Indicators and Moving Averages
TCS’s share price is trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages. This technical positioning suggests a bearish trend in the short to long term. The stock’s Mojo Score stands at 51.0 with a Mojo Grade of Hold, upgraded from Sell on 22 Apr 2025, reflecting a cautious stance amid recent price pressures.
The stock’s market capitalisation grade remains at 1, indicating its status as a large-cap entity within the Computers - Software & Consulting sector. Despite the current weakness, TCS offers a relatively high dividend yield of 4.07%, which may provide some income support to investors amid price volatility.
Recent Performance Trends
TCS has been on a downward trajectory over recent sessions, recording a consecutive two-day decline with a cumulative loss of 3.6%. Over the past week, the stock has fallen 4.61%, significantly underperforming the Sensex’s 1.10% decline. The one-month and three-month performances are notably weak, with losses of 17.99% and 17.46% respectively, compared to the Sensex’s positive 1.22% and negative 2.79% returns over the same periods.
Year-to-date, TCS has declined 19.14%, considerably lagging the Sensex’s 3.16% fall. Over the longer term, the stock’s performance remains subdued, with a one-year loss of 29.46% against the Sensex’s 10.85% gain, and a three-year decline of 23.76% versus the Sensex’s robust 38.79% advance. Even over five and ten years, TCS’s returns of -12.17% and +133.68% respectively trail the Sensex’s 62.52% and 257.45% gains.
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Sector and Broader Market Pressures
The IT - Software sector, to which TCS belongs, has been under pressure, declining 3.06% on the day. This sectoral weakness is reflective of broader market concerns and risk aversion among investors. The Sensex’s fall below its 50-day moving average, despite the 50DMA remaining above the 200DMA, indicates a cautious market environment with potential for further volatility.
TCS’s underperformance relative to the Sensex and sector peers highlights the immediate price pressures it faces. The stock’s technical weakness, combined with sectoral headwinds, has contributed to the intraday low and overall negative sentiment.
Valuation and Dividend Considerations
Despite the recent price decline, TCS maintains a high dividend yield of 4.07%, which is attractive relative to many peers in the sector. This yield reflects the company’s commitment to returning capital to shareholders, even as the stock price experiences downward pressure. However, the yield alone has not been sufficient to offset the selling pressure observed in recent sessions.
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Summary of Price Pressure and Market Sentiment
TCS’s intraday low of ₹2,581 on 24 Feb 2026 underscores the persistent price pressure facing the stock amid a challenging market environment. The decline is consistent with sectoral weakness and broader market declines, with the stock underperforming key benchmarks. Technical indicators remain unfavourable, with the share price below all major moving averages, signalling continued caution among market participants.
While the company’s dividend yield remains relatively high, it has not mitigated the downward momentum. The stock’s proximity to its 52-week low further emphasises the current negative sentiment. Overall, the intraday performance reflects a combination of sectoral headwinds, technical weakness, and cautious market sentiment impacting Tata Consultancy Services Ltd. on this trading day.
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