- Tata Consultancy Services (TCS) shares hit a seven-year low with markets opening up this morning to a huge crash. The share price of the firm also impacted Indian stock markets
Tata Consultancy Services (TCS) shares hit a seven-year low with markets opening up this morning to a huge crash. The share price of the firm also impacted Indian stock markets as a major global selloff fell to € 11506.
The value of TCS shares has decreased from average 8.3 lakh crore in December to average 6.3 lakh crore in the last three months— a 24.3% decline resulting in a market cap loss of $27 billion.
The last time the share price of the firm fell below some 1600 was in July 2013. In India, IT stocks were still bearish in the face of a global economic slowdown. As India shut down borders and revoked the most successful visas, things took a turn for the worse.
TCS was not the only stock that crashed during earning hours of trading. Asian markets— including Indonesia, South Korea, Thailand, and the Philippines — stopped trading in what is called the Coronacrash as stocks plunged with the minute markets opened.
In India, the cap for the circuit breaker was first used in 12 years. It was triggered after 10 percent of Nifty50 crashed. Trading was suspended for 45 minutes before the reopening of markets. TCS, therefore, remains uncertain.
TCS briefly regained its spot in this melee as India’s most coveted company back from Reliance Industries, which faced yesterday’s double coronavirus whammy and crude oil price crash. Nonetheless, after markets closed yesterday, 13 March, it was back to being second.
The huge dip in TCS value comes after the firm met on March 11 and announced an interim dividend of approximately 112 per share— a cumulative payout of approximately 4,503 crores. Last week’s dividend decision did little to slow down the stock’s downward trajectory.
It’s not just stocks in India but markets all over the world that continue to remain volatile amid the coronavirus outbreak. The New York Stock Exchange (NYSE) could close its trading floor in the coming week to prevent the spread of the Covid-19 virus.
Overseas market volatility is having an overwhelming impact on stocks. Some more upheavals in US markets, such as shutting down the trading floor, could damage IT stocks such as India’s TCS.
The prolonged pandemic would impact new consumer acquisitions and IT companies ‘ revenue will be corrected by Kotak Securities by 2-4%.
“In addition to and partially as a result of Covid-19, consumer health has begun to decline in multiple verticals. Specifically, sharp rate cuts have a vertical impact on banking. At the beginning of the year, we anticipated a modest increase in spending by US banking clients. Nonetheless, this prospect has all but been removed by the subsequent turn of events, “the study said.
TCS is just one of 783 National Stock Exchange (NSE) stocks which hit its 52-week low this week. NSE and BSE saw yesterday the biggest single-day drops of more than 2,919 points since the financial crisis of 2008.
