Tata Consultancy Services Stock Update: Shares Slip on Kotak Downgrade

Tata Consultancy Services (TCS) is experiencing downward pressure in Friday's intraday trading session, with its shares trading at ₹2,267.20. The IT bellwether opened lower at ₹2,290.10 against its previous close of ₹2,298.00, hitting an intraday high of ₹2,292.00 before sliding to a low of ₹2,263.30. Currently, the stock is down -1.34%, reflecting a cautious sentiment gripping the IT sector. Volume stands at 281,434 shares, indicating sustained selling interest driving the price lower.

TCS Dips Amid IT Sector Volatility

While specific 52-week high and low data for TCS is not available at this moment, the current decline sees the stock trading below its recent opening and previous close, suggesting it is testing immediate support levels. The broader IT sector has witnessed volatility, and today's move for TCS indicates a retreat from the positive momentum seen in parts of the previous session. Stocks To Buy or Sell Today, August 21, 2026: RailTel, HAL, and Tata Motors Passenger Vehicles Among Shares That May Remain in Spotlight on Friday.

TCS Shares Slip After Kotak Downgrades Stock To ‘Add’

The primary catalyst for today's decline appears to be a recent downgrade from Kotak Institutional Equities, which has revised its rating on TCS from 'Buy' to 'Add'. The brokerage firm, while maintaining a target price of ₹2,450, noted that despite recent mega deal wins by TCS, these are not deemed sufficient to drive material growth improvement that could offset prevailing headwinds in the IT services landscape. This follows an earlier downgrade by CLSA on August 18, 2026, which moved TCS to 'Hold' from 'Outperform', setting a target price of ₹2,326. CLSA also indicated that the period of low growth for Indian IT firms might extend until FY30, even as AI revenue is projected to rise significantly.

Adding to the sector's cautious outlook, reports from Reuters highlight that artificial intelligence is reshaping contracts in the Indian IT services sector, with clients increasingly demanding more for less, pushing outsourcing giants like TCS to tie fees to performance outcomes rather than traditional hourly rates. TCS CEO K Krithivasan reportedly stated that approximately 80% of the company's contracts within its finance, human resources, and other business services segments are now outcome-based. Reliance Industries Stock Update: Shares See Marginal Intraday Dip.

Furthermore, recent news regarding TCS deploying a "Digital User Experience Monitoring tool" on company-issued laptops for a large number of its employees has also sparked discussions around data security and employee privacy, potentially contributing to broader sentiment concerns.

Investors will be closely watching for any further analyst commentary or corporate updates that could influence TCS's trajectory for the remainder of the session, especially concerning the impact of AI on deal structures and the broader demand environment for IT services.

Disclaimer: The information provided in this article is based on news reports and is not intended as investment advice. Investing in stocks involves risk. LatestLY advises its readers to consult with a financial advisor before making any investment decisions.

(The above story first appeared on LatestLY on Aug 21, 2026 09:45 AM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).