TCS Stock in Focus: 54% Crash in 2 Years | Buy the Dip Opportunity?
Tata Consultancy Services (TCS), one of India’s largest IT companies, has seen a sharp correction over the past two years, raising an important question for investors: Is the TCS stock crash creating a long-term buy-the-dip opportunity?
TCS is currently trading around ₹2,361, significantly below its previous high of approximately ₹4,266 recorded on August 26, 2024. From that peak, the stock has declined by more than 54%, making TCS one of the major large-cap IT stocks to face sustained selling pressure.
TCS Share Price Falls Over 54%
TCS witnessed a prolonged decline after reaching its August 2024 peak. The stock eventually touched a low of around ₹1,966 on June 29, 2026, before recovering moderately toward the ₹2,361 level.
The recent recovery raises the possibility of a change in sentiment. After a prolonged bearish phase, TCS may enter a period of consolidation with a bullish bias, provided the stock continues to hold above its recent lows and the broader IT sector begins to stabilize.
For investors tracking the TCS share price, TCS stock analysis, and TCS long-term investment outlook, the next several quarters could be important in determining whether the current recovery becomes a sustainable trend.
Why Did TCS Stock Fall So Much?
The major pressure on TCS has come from continued selling in the Indian IT sector, particularly from Foreign Institutional Investors (FIIs). The shift in global investor preference and concerns surrounding the future of traditional IT services have weighed on large-cap IT stocks.
The strong technology rally around 2020 created expectations that the IT sector would continue expanding rapidly. As valuations and growth expectations changed, the sector subsequently faced a prolonged adjustment.
TCS has also been affected by concerns about artificial intelligence, automation, changing technology spending patterns, and slower global IT demand. These factors have increased uncertainty around the future growth trajectory of traditional IT-services companies.
FII Selling vs DII Buying in TCS
One of the interesting developments in the TCS stock story is the difference between institutional investor behavior.
FIIs have remained consistent sellers in the IT sector, contributing to continued pressure on companies such as TCS. At the same time, Domestic Institutional Investors (DIIs) have been using lower prices to accumulate shares.
Retail investors have also shown interest in TCS after the steep correction. The key question is why investors are buying despite continued weakness.
A major reason could be the perception that the stock has already experienced a substantial valuation correction and may offer better long-term risk-reward potential compared with its previous highs.
AI Could Be the Next Major Trigger for TCS
Artificial intelligence remains one of the biggest variables for the future of the IT industry.
The AI boom could create both opportunities and risks for TCS. On one side, higher AI adoption could increase demand for consulting, cloud migration, data services, cybersecurity and enterprise transformation. On the other side, automation and AI could reduce demand for certain traditional outsourcing activities.
Therefore, the impact of AI on TCS share price and TCS future growth will depend heavily on how effectively the company converts AI disruption into new business opportunities.
Is TCS a Buy-the-Dip Opportunity?
After a decline of more than 54% from its August 2024 peak, TCS is certainly attracting attention from long-term investors. The stock has already fallen substantially, and the recovery from the June 2026 low indicates that buyers are becoming active at lower levels.
However, a falling stock is not automatically a buying opportunity. Investors should monitor whether TCS can build a durable base rather than simply experiencing a temporary technical bounce.
The next phase could therefore be consolidation with a bullish bias, especially if the broader IT sector stabilizes and institutional selling reduces.
For long-term investors, the TCS correction may represent a potential buy-the-dip setup, but confirmation through price action, earnings performance and sector trends remains important.
TCS Stock Outlook
TCS has moved from a high-growth market leader narrative toward a period of valuation adjustment, institutional selling and uncertainty around the future of traditional IT services.
With the stock now trading near ₹2,361 versus ₹4,266 in August 2024, the correction has been substantial. The June 2026 low near ₹1,966 could become an important reference point for the stock’s next major trend.
If TCS successfully holds above its recent lows, stabilizes its earnings growth and benefits from the next phase of AI-driven technology spending, the stock could potentially build a stronger long-term recovery.
However, investors should continue to monitor institutional flows, quarterly results, global technology spending and AI-related business growth before making investment decisions.
Overall, TCS remains a key IT stock to watch. After a 54% decline from its previous peak, the stock is entering a critical phase where consolidation, stabilization and a potential long-term bullish recovery could become the next major theme.