Tata Consultancy Services Sees Robust Value Trading Amid Sector Gains

High Value Turnover and Trading Volumes

TCS emerged as one of the most actively traded equities by value, with a total traded volume of 7,82,302 shares and a staggering traded value of ₹205.83 crores by mid-morning on 25 Feb 2026. This level of liquidity underscores the stock’s appeal among both retail and institutional investors, facilitating sizeable trade sizes without significant price impact. The stock opened at ₹2,596.0, touched an intraday high of ₹2,652.6, and was last quoted at ₹2,622.7, marking a 2.70% gain from the previous close of ₹2,573.7.

Price Movement and Technical Context

Despite the positive intraday momentum, TCS remains trading below its key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, indicating that the stock is still in a consolidation phase after recent volatility. The current price is approximately 2.43% above its 52-week low of ₹2,561.3, suggesting that while the stock has rebounded from recent lows, it has yet to regain its longer-term upward trajectory.

The stock’s performance today is broadly in line with the Computers - Software & Consulting sector, which gained 2.11%, while the Sensex rose by a more modest 0.57%. TCS’s 1-day return of 1.92% closely mirrors the sector’s movement, reflecting its integral role within the IT space.

Institutional Interest and Delivery Volumes

One of the most compelling indicators of renewed investor interest is the surge in delivery volumes. On 24 Feb 2026, TCS recorded a delivery volume of 50.9 lakh shares, representing a remarkable 187.42% increase compared to the five-day average delivery volume. This spike in delivery volumes signals strong buying conviction from long-term investors and institutions, who are likely accumulating shares amid the recent price correction.

Such heightened participation is often a precursor to sustained price appreciation, as institutional investors typically conduct thorough fundamental analysis before increasing their holdings. The increased delivery volume also enhances liquidity, making it easier for large trades to be executed efficiently.

Valuation and Dividend Yield

TCS currently holds a Market Capitalisation Grade of 1, reflecting its status as a large-cap leader with a market cap of approximately ₹9,49,024.36 crores. The company offers a high dividend yield of 4.23% at the current price level, which is attractive for income-focused investors seeking steady returns alongside capital appreciation.

The stock’s Mojo Score has improved to 51.0, upgrading its Mojo Grade from Sell to Hold as of 22 Apr 2025. This upgrade reflects a more balanced outlook, acknowledging the stock’s recent price recovery and improving fundamentals, while recognising that it has yet to break decisively above key resistance levels.

Sectoral and Market Context

The IT - Software sector has shown resilience, gaining 2.11% on the day, buoyed by positive global cues and steady demand for digital transformation services. TCS, as a bellwether stock in this sector, often leads or mirrors sectoral trends. Its performance today, slightly below the sector average, suggests cautious optimism among investors, who are weighing near-term risks against the company’s robust business model and strong order book.

Liquidity and Trade Size Considerations

Liquidity remains a key strength for TCS, with the stock’s traded value representing about 2% of its five-day average traded value. This liquidity supports trade sizes of up to ₹23.51 crores without undue price disruption, making it a preferred choice for institutional investors and large portfolio managers looking to adjust positions efficiently.

Outlook and Investor Considerations

While TCS has demonstrated a positive intraday bounce and improved investor participation, the stock remains in a technical consolidation phase, trading below all major moving averages. Investors should monitor whether the stock can sustain gains above the 5-day and 20-day moving averages to confirm a trend reversal.

Given the company’s strong fundamentals, large market capitalisation, and attractive dividend yield, TCS remains a core holding for many portfolios. However, the Hold rating and Mojo Score of 51.0 suggest that investors should exercise caution and consider valuation levels carefully before initiating new positions.

Institutional interest, as evidenced by the surge in delivery volumes, is a positive sign, but the broader market environment and sectoral dynamics will continue to influence near-term price action. Investors may also want to compare TCS with peers and other sectors to optimise portfolio allocation.

Summary

Tata Consultancy Services Ltd. is currently experiencing robust value trading and heightened institutional interest, reflected in strong delivery volumes and a significant traded value of over ₹205 crores. The stock’s recent upgrade from Sell to Hold by MarketsMOJO, combined with a high dividend yield of 4.23%, makes it an attractive proposition for investors seeking stability in the IT sector. However, technical indicators suggest that the stock is still in a consolidation phase, and investors should watch for confirmation of trend reversal before committing fresh capital.

Overall, TCS remains a key large-cap stock with solid fundamentals and liquidity, but selective entry points and ongoing monitoring of sectoral trends are advisable for optimal investment outcomes.

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