Shares of TCS, India’s biggest IT services firm, fell 2% to an intraday low of Rs 2,144 on the BSE on Monday. Rising U.S. bond yields renewed worries that the Federal Reserve could hike rates later this year. The decline brings the stock’s loss to 12% across the past four sessions.
Higher U.S. yields and tighter policy expectations usually weigh on Indian IT companies. They can lower growth valuations, slow client technology spending, shift focus to cost control instead of new projects, and prompt foreign selling from emerging markets.
The drop follows a brief rebound in IT stocks the prior week. The sector has faced pressure through much of 2026 over fears that fast AI progress may disrupt traditional services.
Analyst Sudeep Shah of SBI Securities advised avoiding the stock, citing a bearish trend. Momentum indicators have weakened, with RSI falling after approaching 60, and the price has moved below the Bollinger Band midline plus several moving averages.
Harshal Dasani of INVasset PMS noted the setup now tests a possible breakdown. The 9% fall after a 6.53% rebound last week indicates the recovery was likely a dead-cat bounce. He views the Rs 2,400-2,450 zone as key resistance until strong volume returns.
TCS shares are down over 32% since January and about 37% over the past year.
In the March quarter, consolidated net profit rose 12% year-on-year to Rs 13,718 crore while revenue grew 10% to Rs 70,698 crore. The firm declared a final dividend of Rs 31 per share and won three large deals worth $12 billion in total contract value. Quarterly revenue increased 5.4%, constant-currency growth was 1.2%, and operating margin reached 25.3%.
