TCS Bleeds ₹5.66 Lakh Crore in Market Value: Worst Crash Since 2008

Tata Consultancy Services (TCS), the crown jewel of the Tata Group and India’s largest IT services firm, is enduring its steepest market decline since the 2008 global financial crisis. In a year marked by economic headwinds, geopolitical uncertainty, and structural shifts in the tech industry, TCS has shed nearly ₹5.66 lakh crore in market capitalization — a staggering 34% drop from its August 2024 peak of ₹4,585.90 per share.

As of August 2025, the stock trades at ₹3,019.70, slashing its market cap to ₹10.93 lakh crore from a high of ₹16.59 lakh crore. This 26% year-to-date decline makes 2025 the worst-performing year for TCS in nearly two decades.

Historic Decline in Market Value

The impact has rippled across institutional portfolios. Life Insurance Corporation of India (LIC), which holds a 4.86% stake in TCS, has seen its holdings shrink by over ₹27,000 crore.

Metric	Value
Peak Share Price (Aug 2024)	₹4,585.90
Current Share Price (Aug 2025)	₹3,019.70
Drop from Peak	-34%
Market Cap Lost	₹5.66 lakh crore
Current Market Cap	₹10.93 lakh crore
Peak Market Cap	₹16.59 lakh crore

Catalysts Behind the Crash

• Weak Q1 FY26 Earnings: Revenue rose just 1.3% YoY to ₹63,437 crore; net profit up 5.9% to ₹12,760 crore — both below expectations.
• Global Headwinds: U.S. tariffs under Trump 2.0 have dampened client spending in key markets like the U.S. and Europe.
• Workforce Layoffs: TCS is cutting 2% of its global workforce (~12,000 jobs), signaling a shift toward AI-led delivery models.
• Technical Breakdown: Analysts warn of no bullish reversal signs; next support zone is ₹2,682.

2025 Performance Snapshot

Month	Closing Price	Monthly Change
Jan	₹4,112.39	—
Feb	₹3,483.25	-15.3%
Mar	₹3,606.15	+3.5%
Apr	₹3,453.70	-4.3%
May	₹3,463.40	+0.2%
Jun	₹3,462.00	-0.1%
Jul	₹3,036.80	-12.3%
Aug	₹3,036.40	-0.1%

YTD Decline (2025): -26%
TCS’s downturn is not just a company-specific event — it reflects broader challenges facing India’s $250 billion IT services industry. The shift toward automation, AI-led delivery, and geopolitical realignments are forcing legacy players to rethink their operating models. While Infosys and Wipro have also seen declines, TCS’s sheer size makes its fall particularly symbolic.

Despite the turbulence, TCS remains a formidable force with deep client relationships, strong cash reserves, and ongoing investments in AI, cloud, and cybersecurity. The company’s recent expansion in Mexico — its eighth center in the country — signals a strategic pivot to diversify delivery hubs and tap into Latin American talent.

Market Cap of All Listed Co.s on BSE Increased by $61.2 Bn in A Single Day, Reaching Total of ~ $5,546 Bn

On Thursday, 12 September, the market capitalization of all listed companies on the Bombay Stock Exchange (BSE) surged by ₹5.14 lakh crore (about US $61.2 billion) in a single day, reaching a total of ₹465.9 lakh Crore (about US$ 5,546 billion). 

This significant increase was driven by a strong performance in the S&P BSE Sensex, which added 1,048.49 points, and the NSE Nifty50, which gained 343.65 points.

Notably, there has been an increase in foreign institutional investments (FIIs) in Indian equities, driven by the attractive valuations and growth prospects of Indian companies.

To recall, in mid of last week Prime Minister Narendra visited Singapore and met the country's top business leaders and CEOs. The CEOs from prominent Singaporean companies, include Blackstone Singapore, Temasek Holdings, Sembcorp Industries Limited, CapitaLand Investment, ST Telemedia Global Data Centers, and Singapore Airlines, pledged their commitment to invest in India.

Positive domestic economic indicators, including robust GDP growth and strong corporate earnings, have further bolstered investor confidence.

Supportive government policies and regulatory measures aimed at boosting economic growth and stability have also played a role in enhancing market sentiment.

Key sectors such as IT, banking, auto, and financial services saw notable gains, contributing to the overall market rise.

Last week, PM Modi visited Indonesia to attend the ASEAN-India Summit and the East Asia Summit and discussed strengthening economic and strategic ties with ASEAN countries. The prime minister emphasized cooperation in areas like trade, investment, and maritime security.

During his trips to Singapore, Indonesia as well as trip to Poland and Russia, in last month, several Memorandums of Understanding (MoUs), investment commitments were signed in areas such as digital cooperation, education and skills development, health and medicine, and the semiconductor ecosystem.

This has boosted the Foreign investors' confidence in Indian markets.

Market Cap of 7 of the Top-10 Companies Up By $16.69 Billion

The combined market valuation of seven of the top-10 valued companies increased by ₹1,40,863.66 crore (US $16.69 billion) last week. Tata Consultancy Services (TCS) and Infosys were the top gainers, with TCS's market cap rising by ₹67,477.33 crore to ₹15,97,946.44 crore and Infosys adding ₹36,746.21 crore to reach ₹7,72,023.49 crore.

This positive trend was driven by a strong rally on Friday, which helped the BSE benchmark climb 730.93 points.

Other notable gainers included Bharti Airtel, ICICI Bank, ITC, and Reliance Industries.

Bharti Airtel’s valuation increased by ₹11,727.55 crore to ₹8,45,123.87 crore, and ICICI Bank’s by ₹10,913.96 crore to ₹8,36,115.19 crore.

ITC saw a rise of ₹8,569.73 crore, taking its market cap to ₹ ₹6,28,399.10 crore, while Reliance Industries added ₹5,311.4 crore, reaching ₹20,00,076.41 crore.

Hindustan Unilever’s valuation raise up by ₹117.48 crore to ₹6,45,926.13 crore.

In a different scenario, the market capitalisation of Life Insurance Corporation of India (LIC) dropped by ₹47,943.48 crore to ₹6,69,058.26 crore.

HDFC Bank’s valuation fell by ₹13,064 crore to ₹12,43,441.53 crore, and State Bank of India’s by ₹10,486.42 crore to ₹7,25,080.10 crore.

India's Top 10 Most Valued Firms Lose $21.53 Billion in Market Cap

On Monday, the top 10 most valued firms in India experienced a significant loss in market valuation, shedding a total of ₹2,58,376 crore (US $21.53 Billion). Reliance Industries Ltd. (RIL) and Tata Consultancy Services Ltd. (TCS) were the primary contributors to this decline.

1. Reliance Industries Ltd. (RIL): Lost ₹69,454 crore, bringing its market cap to ₹19.59 lakh crore.

2. Tata Consultancy Services Ltd. (TCS): Lost ₹45,024 crore, resulting in a market cap of ₹15.22 lakh crore.

3. HDFC Bank Ltd.: Also experienced a decline, losing ₹32,723 crore, with a market capitalization of ₹12.26 lakh crore.

4. State Bank of India (SBI): Saw its valuation decrease by ₹33,780 crore, reaching ₹7.22 lakh crore.

5. Hindustan Unilever Ltd. (HUL): Interestingly, HUL was the only gainer during this session, with its market cap rising by ₹6,449 crore to ₹6.39 lakh crore.

Overall, Reliance Industries remained the most valued firm, followed by TCS, HDFC Bank, Bharti Airtel Ltd., ICICI Bank Ltd., State Bank of India, Infosys, Hindustan Unilever Ltd., ITC Ltd., and Larsen & Toubro Ltd. Despite the losses, the Indian benchmark indices ended at their lowest levels since June 28, reflecting the impact of these market fluctuations.

NVIDIA's Market Value is Now Larger Than Amazon and Tesla Combined

In a milestone for Nvidia, the AI chipmaker's market capitalization has reached approximately $2.59 trillion. To put that in perspective, Amazon's market cap is about $1.91 trillion, and Tesla's market cap stands at around $574.40 billion. When combined, Amazon and Tesla's market caps total roughly $2.48 trillion, which confirms that Nvidia's market cap has surpassed the combined market cap of these two tech giants. This is a significant indicator of Nvidia's growth and its impact on the tech industry.

US stock indices have also risen to fresh all-time highs in early trading, boosted by NVIDIA's another set of blockbuster results. It is the company's results that pushed the chipmaker's market value over $2.5 trillion for the first time.

Investors have become hooked on NVIDIA as the company has consistently blown past analysts' revenue and margin forecasts and emerged as the dominant provider of the graphical processing units that power generative Al.

Nvidia's financial performance in the past quarter has been remarkable. The company reported a 265% increase in revenue, reaching $22.1 billion. This growth is significantly higher than the previous quarter's revenue of $18.12 billion, which itself was a 206% increase from the year before.

With this, the chipmaker has also announced a 10-for-one stock split and is raising its quarterly cash dividend by 150% from $0.04 per share to $0.10 per share of common stock. The increased dividend is equivalent to $0.01 per share on a post-split basis and will be paid on Friday, June 28, 2024, to all shareholders of record on Tuesday, June 11, 2024.

The substantial revenue growth can be attributed to several factors, including a record quarterly Data Center revenue of $18.4 billion, which is up 27% from the previous quarter and an impressive 409% from the same period last year. Nvidia's strategic focus on accelerated computing and generative AI has played a crucial role in this surge, meeting the high demand from various sectors such as cloud-service providers, enterprise software, and consumer internet companies.

Nvidia's CEO, Jensen Huang, highlighted that the company's Data Center platform is powered by increasingly diverse drivers, and vertical industries like auto, financial services, and healthcare are now at a multibillion-dollar level¹. This performance underscores Nvidia's strong position in the semiconductor industry and its successful expansion into high-growth areas.