The Tata Group is going through its worst phase. The group’s leading company TCS has reached its worst time after the recession of 2008. The company’s market value has reduced by Rs 5.66 lakh crore. The company’s shares lost 55 percent during the recession year. After that the year 2025 is going bad for him. This year too, the company’s shares have lost about 26 percent. Its market capitalization has come down from Rs 16.57 lakh crore to Rs 10.93 lakh.
Why the company’s shares are falling
For the past several months, the Indian stock market has been going on. Foreign investors are withdrawing money from indiscriminately, due to which pressure is being seen on this sector. Once for Fiis which was considered an IT sector favorite. Now the same sector is being seen in the same sector. Foreign Investors have reduced their stake in TCS from 12.35% in June 2024 to 11.48% in June 2025. The company’s shares have broken more than 25 percent this year due to their heavy selling.
The Nifty IT index has fallen by 25% so far this year, causing it to go to the worst performing sector in the market. From 2025 to July, more than half of the 95,600 crore fired from India towards FII have come from IT shares alone.
Investment has increased in mutual funds
However, mutual funds have taken the opposite stance. Domestic institutions have increased their stake in TCS from 4.25% to 5.13% in a year and July data shows that mutual funds have made new purchases of Rs 400 crore. The rear PE of TCS has come down from 41 times to 20 times, CAGR is 8.5% in five years and CAGR is 6%. Long -term figures suggest that IT has increased the compound rate of 12.5% annually in two decades, yet in the last three to five years, he has performed less than the Nifty.
The decision to cut its employees by 2% is being investigated by TCS. Jefferies warned that the move by TCS to cut the number of employees could reduce the implementation in the near future and increase the number of employees in the long term.