TCS Mcap rout deepens; loses spot to ICICI Bank for first time since 2009
Reliance Industries currently ranks first with a market capitalisation, followed by HDFC Bank in second place and Bharti Airtel in third
 "TCS Mcap rout deepens; loses spot to ICICI Bank for first time since 2009")
A day after State Bank of India (SBI) overtook Tata Consultancy Services (TCS) to become the fourth most valuable listed company by market capitalisation, ICICI Bank climbed to the fifth spot on Thursday, pushing TCS further down the rankings.
The private lender's market cap surpassed that of the technology giant for the first time since June 2009, according to Bloomberg data. As of 12:00 pm, ICICI Bank's market cap stood at ₹10.18 trillion, while TCS was valued at ₹10.02 trillion on the BSE.
On Thursday, ICICI Bank shares rose as much as 1.5 per cent to ₹1,428 apiece, their highest level since January 16 this year. Meanwhile, TCS extended its decline, falling nearly 5 per cent to ₹2,766 per share, the lowest level since December 2020. During the session, the benchmark Nifty50 index fell by over 0.5 per cent.
Reliance Industries currently ranks first with a market capitalisation of ₹19.71 trillion, followed by HDFC Bank at ₹14.19 trillion in second place and Bharti Airtel at ₹11.51 trillion in third, according to BSE data.
Why is TCS slipping down the Mcap rankings?
TCS stock, along with its peers are seeing panic selling as the global tech stocks face growing pressure from artificial intelligence (AI). The selloff began after AI startup Anthropic released a productivity tool for in-house lawyers. Investors worry that the development of such AI tools will hurt software companies and profitability across the industry.
On Thursday, the Nifty IT slipped nearly 5 per cent, with the index down 11.7 per cent so far this year. The gauge for the IT stocks fell to the lowest level since April 2025. Wipro shares lead the yearly fall, down 16.8 per cent, followed by Coforge (down 14 per cent), LTIMindtree (down 13.8 per cent) and TCS (down 13.5 per cent).
In the next 3-6 months, analysts at Motilal Oswal said they will continue to monitor AI-native partnerships, which will be a key driver in the next 12-14 months. "We expect that this should lead to a pick-up in AI services deals in mid-2026 in the form of short-cycle deals. We are seeing an acceleration in AI partnerships, and hence maintain our view on the sector for now."
Global SaaS names such as Salesforce and other enterprise software firms also saw heavy selling as markets priced in faster AI-led disruption to legacy models, ICICI said in an earlier note. While AI workspaces like Claude Cowork signal a shift toward agent-led automation, enterprises still require large-scale integration, governance, data modernization and system orchestration, which are areas where IT services firms remain critical, the brokerage firm said.
In the December quarter, TCS reported a 13.9 per cent decline in its net profit at ₹10,657 crore for Q3FY26 from ₹12,380 crore in the year-ago quarter. Sequentially, profit declined 11.7 per cent. TCS’s revenue performance beat Bloomberg estimates, while profit missed expectations. The company’s bottom line was impacted due to restructuring expenses, one-time charges arising from changes in labour codes, and a provision of ₹1,010 crore for a legal claim.
=====
(Disclaimer: The views and investment tips expressed by the analysts in this article are their own and not those of the website or its management. Business Standard advises users to check with certified experts before taking any investment decisions.)