Stock Crash: TCS set for biggest fall in six years; this level holds the key

Shares of India's largest IT services company, Tata Consultancy Services Ltd. shares plunged as much as 9% on Wednesday, June 3, putting the IT major on course for its biggest single-day decline in more than six years.

The stock hit an intraday low of ₹2,224.80 and was trading 8.6% lower at ₹2,235.4 as of 1.10 PM. If losses hold, it would mark TCS' steepest one-day fall since March 2020, during the peak of the COVID-led market selloff.

The sharp decline in the stock has erased nearly ₹80,000 crore from the company's market capitalisation so far during the session.

Also read: IT Stocks Crash: TCS, Infosys and peers wipe out over ₹1.5 lakh crore of investor wealth

Level To Watch

With this fall, the ₹2,210 level becomes crucial for TCS on the downside. A slip below this level would mean that the stock's market capitalisation would have slipped below the ₹8 lakh crore mark.

Since the start of the year, TCS has lost nearly ₹4 lakh crore in market capitalisation, having begun the year at the level of ₹11.6 lakh crore.

Also read: IT stocks led by TCS, Infosys fall up to 8% as profit booking sets in after relief rally

Price & Volume Action

Trading activity also spiked significantly amid the sell-off. More than 1.1 crore shares of TCS have changed hands by 12.30 pm, nearly four times the stock's 20-day average daily volume of 28.1 lakh shares, indicating heightened investor participation.

As of Tuesday, only four previous instances were seen over the last three months, when more than 1 crore shares of TCS had changed hands in a single trading session.

Also read: LTM shares fall over 7%, near 52-week low, after bears call growth targets 'ambitious'

Nearing "Oversold Levels"

Momentum indicators suggest the stock is approaching oversold territory. The Relative Strength Index (RSI) on the daily chart has fallen to 39. An RSI reading below 30 is generally considered indicative of oversold conditions, although it does not necessarily signal an immediate reversal.

The stock has declined 30.6% in 2026 so far and is down nearly 10% over the last month alone.

Despite the sharp correction, TCS remains India's largest IT services company by market capitalisation.