TCS shareholders lose Rs 4 lakh crore in 2025, more pain ahead?

Shareholders of IT major Tata Consultancy Services (TCS) have lost over Rs 4 lakh crore in 2025 as weak demand outlook, Trump administration's plan to hike fees for H-1B visas and the disruptive influence of generative AI, coupled with subdued quarterly earnings performance took a toll on investor sentiment. 

Market cap of TCS stood at Rs 10.71 lakh crore in the previous session compared with a market cap of Rs  14.81 lakh crore on December 31, 2024. 

The reduction in the market cap amounts to a fall of 28% in the stock this year. The stock is down 30% in a year. 

In fact, shareholders of the IT stock are sitting on losses in period up to three years. 

The stock has declined 19% in six months and 14% in three months. In terms of technicals, its RSI has approached the 33 mark, signalling the stock is trading near the oversold zone. 

In terms of simple moving averages, the stock is trading below all short term and long term ranges, signaling the negative trend in the large cap IT stock. 

Meanwhile, TCS shares ended lower for the fifth straight session on Thursday. The stock closed at Rs Rs 2,960.35 on BSE. The stock has now fallen to a three-year low. 

Here's a look at what analysts say on the outlook of the stock. 

Jigar S Patel from Anand Rathi said, "Support will be at Rs 2900 and resistance at Rs 3100 . A decisive move above the Rs 3100 level may trigger a further upside of Rs 3150. The expected trading range will be between Rs 2900 and Rs 3150 for the short-term." 

Ameya Ranadive, Chartered Market Technician, CFTe, Sr Technical Analyst, StoxBox is bearish on the outlook of the stock. 

"Tata Consultancy Services has marked a breakdown below the crucial Rs 2,990–3,000 support zone. This breach signals further weakness in the near term, as the stock has now slipped into a bearish structure on the chart. The ADX at 37 highlights a strengthening bearish trend, while negative directional movement remains dominant. The MACD histogram continues to print deep red bars, confirming sustained downside momentum.

Unless the stock reclaims the Rs 3,000 mark, TCS could extend losses toward Rs 2,880-Rs 2,750 in the near term. On the upside, resistance is now capped at Rs 3,020, with further hurdles at Rs 3,090- Rs 3,150. Traders are advised to stay cautious, while investors may wait for stability before considering fresh entries."