Why tcs share is falling?
TCS, like other IT companies, is affected by foreign exchange rates. If the rupee strengthens against the dollar, their margins shrink. This often leads to selling pressure in the market.
Also note that global events like interest rate hikes in the US or recession fears in Europe hit IT stocks hard, because clients cut down on outsourcing budgets. That’s why TCS and Infosys often move in sync.
I think it's a few things. Their recent results were okay, but not as strong as people hoped. They also reported fewer big new projects, which worries investors about future growth. Plus, the global economy is a bit slow. Many big clients, especially in the US, are cutting back on tech spending for now. It's a problem for the whole IT sector, not just TCS.
TCS share price can fall due to various reasons: - Global IT spending slowdown. - Weak quarterly results. - Pressure from US and European markets (their biggest clients). - General stock market corrections. It’s normal for large-cap IT stocks to fluctuate.
I think the immediate reason is their Q1 FY2025 earnings report, which showed weaker margins. Investors expected better numbers, but the revenue growth was modest. As a result, the stock corrected.