Why TCS Share Price is Falling

Indian stock markets fell on Thursday, continuing a six-day losing streak due to tariff worries after US President Donald Trump's announcement of a 100% levy on branded drugs and 25% on heavy-duty trucks.

At the time of writing, the BSE Sensex was trading lower at 438 points at 80,721, while the NSE Nifty50 was trading lower at 138 points at 24,752.

While overall market sentiment remained negative, TCS stood out as a notable decliner.

Its share price drew attention as it declined today, raising concerns among investors.

What's dragging it down?

#1 H-1 B Uncertainty

TCS and other Indian IT stocks are feeling pressure from the recent H-1B visa changes because a significant portion of their workforce for US-based projects relies on these visas.

Even though mid-sized IT companies and TCS have been actively reducing dependency on H-1B visas, any proposed restrictions create uncertainty about their ability to deploy talent in the US, which is a major revenue market.

Investors fear that stricter H-1B rules could:

1. Increase staffing costs - Companies may need to hire locally in the US, where wages are higher.
2. Delay project delivery - Limited access to skilled personnel can slow down ongoing projects.
3. Impact growth projections - Reduced workforce flexibility may affect revenue growth, especially for government and consulting contracts.

So even if the fundamental impact is not high, the market has reacted negatively to perceived risks, which explains the fall in TCS and other Indian IT stocks.

#2 FII Selling

Following consistent FII buying, the company experienced a turnaround in the March 2025 quarter as FIIs began decreasing their stake.

Then FII holdings declined again from 12% in March 2025 to 11.5% in June 2025.

This shift in institutional sentiment in the company is another reason for the share price to decline.

What Next?

TCS' chairman stated that IT and business services are rapidly moving towards automation.

AI is transforming software development by modernising legacy systems and integrating intelligent AI agents into business operations.

TCS plans to focus on building a large team of AI agents to work with humans, delivering solutions through a human-plus-AI approach, investing in AI infrastructure, and partnering with top hardware companies, tech innovators, and startups.

The company has developed an AI-powered energy platform that helps clients optimize energy use, reduce emissions, and lower costs.

TCS is well positioned for long-term growth due to its strong foundation, investment in emerging technologies, and robust client relationships.

How TCS Share Price Has Performed Recently

In the past five trading sessions, TCS share price has declined 8.5%. Over the last one year, the share price has declined 32%.

The stock touched its 52-week high of Rs 4,494 on 10 December 2024 and a 52-week low of Rs 2,892 on 26 September 2025.

About TCS

TCS is a leading global IT services, consulting, and business solutions organisation, and part of the Tata Group, India's largest multinational conglomerate.

TCS partners with industry-leading companies to drive digital transformation and innovation. The company helps clients evolve by applying and scaling new technologies, like modern Artificial Intelligence and cloud solutions.

The company is recognised for its engineering excellence, high standards of customer service, and long-term client relationships that often span decades.

To know more, check out the TCS fact sheet and latest quarterly results.

For a sector overview, read our IT sector report.

You can also compare TCS with its peers on our website.

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Investors should evaluate the company's fundamentals, corporate governance, and valuations of the stock as key factors when conducting due diligence before making investment decisions.

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