According to reports, the hike will be effective from September 1, and will cover nearly 80% of TCS’s workforce.
India’s largest IT services firm, Tata Consultancy Services (TCS) has announced a wage hike for nearly 80% of its workforce, just months after laying off 12,000 workers. But the stock continues to reel under pressure, with its technical charts flashing a bearish signal.
At the time of writing, TCS shares were down 0.54% at ₹3,016.
Retail sentiment on Stocktwits, too, has turned from ‘bullish’ to ‘bearish’.
TCS Hikes Wages
According to reports, the hike will be effective from September 1, 2025, and was communicated to employees via an internal email by Chief Human Resources Officer Milind Lakkad and CHRO-designate K. Sudeep on Wednesday.
The announcement comes against the backdrop of TCS’s decision to lay off about 2% of its global workforce, particularly mid- to senior-level roles. TCS had said that the move was crucial for it to become a “future-ready organisation” through strategic investments in AI, technology, market expansion, and enhanced client delivery models.
TCS had previously stated that reskilling and redeployment efforts were ongoing, but some roles, particularly those without viable redeployment opportunities, would be phased out.
Technical Analysis
Analyst Priyank Sharma said that the stock remains under pressure with a bearish trend due to tariff impacts and layoff news, and is potentially heading toward its 2022 lows.
Technically, TCS continues to show clear bearish momentum, with the stock trading well below its key 9-day (₹3,071.87), 70-day (₹3,376.76), and 100-day (₹3,398.39) moving averages, noted SEBI-registered analyst Harika Enjamuri.
The price has slipped below a crucial support level near ₹3,100, with the next major support seen at ₹2,918.10, the analyst said.
The Relative Strength Index (RSI) is at 30.86, approaching oversold territory. While this may hint at the potential for a short-term technical bounce, there are no confirmed signs of a reversal yet, she said.
Trading volumes have also failed to show any bullish divergence, further reinforcing the downtrend.
Enjamuri recommended avoiding aggressive “buy-the-dip” strategies unless there is a clear reversal or base formation around the ₹2,918 – ₹2,950 zone. A close above ₹3,100 backed by strong volume could be an early indicator of stability.
Q1 Earnings Snapshot
Last month, the IT bellwether posted mixed Q1 earnings with muted topline growth, even as profitability and margins held firm. Q1 revenues rose 5.4% to ₹63,438 crore, while profit rose 8.7% to ₹12,829 crore. Operating margins came in at 24.6%. The company also announced a ₹11/share interim dividend.
Year-to-date (YTD), the stock has shed over 1/4th of its total value.
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