TCS Shares Plunge 9% in Sharpest Fall Since COVID Crash

$TCS ancy Services (TCS) shares tumbled nearly 9% on Wednesday, June 3, 2026, hitting a six-year low and dragging the broader IT sector into turmoil. The Nifty IT index plunged 5.6%, marking its worst session in four months as heavy profit-booking followed a recent relief rally. Investors grew jittery over persistent concerns around AI disruption to traditional IT services, coupled with TCS’s weak growth visibility and margin pressures. The stock has now fallen over 23% year-to-date, wiping out significant market value. Other IT majors like Infosys and HCL Tech also declined sharply. Analysts view the sell-off as largely technical after a short rebound, but sustained recovery will depend on improving demand and clearer AI adaptation strategies. Valuations now appear attractive, yet near-term caution remains.