Mumbai: Shares of Tata Consultancy Services (TCS) have fallen sharply, pushing its market capitalisation below Rs 10 lakh crore. On February 12, ICICI Bank moved ahead of TCS in market cap rankings. Earlier this week, State Bank of India (SBI) had also crossed TCS.
This marks a major shift as TCS has long been one of India’s most valuable companies.
Stock Hits One-Year Low
On February 12, TCS shares fell nearly 5 percent to around Rs 2,763 on the BSE. This is the stock’s lowest level in one year.
The stock has fallen about 31 percent from its one-year high of Rs 4,020. Due to this fall, the company’s market value dropped below the Rs 10 lakh crore mark.
Top Companies By Market Capitalisation
Currently, Reliance Industries remains the most valuable company in India, followed by HDFC Bank. SBI and ICICI Bank have now moved ahead of TCS.
This shows strong performance of banking stocks compared to IT stocks in recent months.
Why TCS And IT Stocks Are Falling?
The fall in TCS and other IT stocks is mainly linked to global worries about Artificial Intelligence (AI). Investors fear that new AI tools may reduce demand for traditional software services.
The concern increased after AI startup Anthropic launched productivity tools that can replace some professional services work.
Global Factors Adding Pressure
Strong US jobs data has reduced expectations of early interest rate cuts. Higher interest rates usually reduce investment in technology stocks.
Brokerage reports say investors should track AI partnerships closely. Experts believe new AI deals may increase in the next 12–14 months, which could support long-term growth for IT companies.
