TCS Share Price: Why has there been such a huge fall in Nifty IT index and TCS shares? Will the arrival of AI have any major impact on the earnings of Indian IT companies? What is the new target price and outlook of TCS after the megacrash?
TCS Share Price Target: The huge decline in the IT sector has increased the concern of millions of investors. Heavy selling was seen in IT stocks in a single day and many big stocks fell by 5% to 9%. Even the country’s largest IT company TCS could not survive this decline. Now the biggest question is whether this is the right time to invest in TCS or is there a risk of further decline? Let us know what the experts are saying…
Why did IT stocks fall so drastically?
1. Fear of AI
The biggest fear is that with the advent of AI (Artificial Intelligence) technology like ChatGPT, the old business model (outsourcing) of IT companies may weaken. Foreign brokerage firm Jefferies even says that with the advent of AI, there could be a huge decline of up to 25% in the traditional earnings of IT companies.
2. Weak demand from America and Europe
Indian IT companies earn maximum income from countries like America and Britain, but at present the economic growth of those countries is slow, due to which the companies there have reduced spending money on new projects.
3. Middle East tension
Due to the ongoing war and tension in West Asia, investors around the world are scared and they are withdrawing their money from the markets.
What are experts saying about TCS Share?
When a big stock falls a lot, it starts looking very cheap. In market language this is called ‘value investing’. But experts are warning that it is important to look at many factors before making a blind purchase. Some market experts believe that AI does not mean that IT companies will close down. Companies will always need partners like Indian IT companies to integrate AI into their systems and create new software. That means the method of work will change, but the work will not end. At the same time, some experts believe that it will take a long time to earn money from AI. Companies must first adopt AI themselves, then translate it into billing for customers. Therefore, these stocks may continue to fluctuate and fall in the short term.
New target price of TCS Share
According to the leading platform Trendlyne (trendlyne.com), looking at the opinions of different brokerages and 10 big experts, the current share price (as of 1.30 pm on June 3) is ₹ 2,240.40 after a fall of 8.44%. Its average target price is up to ₹3253.80. That is, from a long term point of view, experts expect that this stock can go up by about 45% from the current price. But remember, this is just an estimate. In view of this crash, many brokers have also reduced their old rating from ‘Buy’ to ‘Hold’.
Disclaimer: This article has been written for general information and educational purposes only. Do not consider the information given here as investment advice. Investing in the stock market is subject to risks and the past performance of any stock does not guarantee future returns. Assess your financial position, investment goals and risk appetite before investing in TCS or any other stock. Before taking any investment decision, please consult your SEBI registered market expert.