TCS Share Price Jumps 1.71% to Rs. 2,617.60: Can the Rally Sustain?

Overview

• TCS share price rose 1.71% to Rs. 2,617.60 after a difficult month. Hence, signaling renewed investor confidence despite recent market value erosion.

• The company strengthened its AI strategy by partnering with OpenAI. The CEO encouraged employees to adopt AI tools, even at the risk of short-term revenue impact.

• TCS shares traded at a PE ratio of 19.85 with a 4.81% dividend yield. These factors made the stock relatively attractive compared to sector peers.

Tata Consultancy Services (TCS) share price rose 1.71% to Rs. 2,617.60 at press time. The stock opened at Rs. 2,596.00 and hit a high of Rs. 2,654.20 during the day. The price is still far from its 52-week high of Rs. 3,710. The company also lost $21.9 billion in market value in February 2026 on investors' worries of AI disruptions. However, today’s price hike boosted renewed investor confidence in the company's future.

Here’s an in-depth analysis on TCS share price based on Moneycontrol data.

Current Market Performance

The turn in the TCS share price happened alongside a bigger recovery in the Indian IT sector. While the market was down for most of February, the latest trading session brought fresh life into tech stocks. The company’s market cap was over Rs. 9.46 lakh crore. Its dividend yield was at 4.81%, which is good for long-term investors looking for steady income. Most analysts were optimistic about the stock. The majority (41%) on Moneycontrol gave it a ‘Buy’ rating. They believe the company has the strength to handle the current shifts in the tech world.

TCS share price chart on Moneycontrol showed gains of 1.37%. 

A Bold Move into Artificial Intelligence

TCS has recently partnered with OpenAI to give its workers access to ChatGPT Enterprise and Codex. This move aims to help their engineers write code faster and build better software solutions. It wants to become the largest AI-led technology company in the world. They are making sure every employee, from juniors to senior leaders, knows how to use these new tools effectively.

What makes the TCS strategy stand out is its honesty about the risks. CEO K. Krithivasan recently told employees to offer AI solutions to clients even if it reduces the company's current earnings. In the past, IT companies made money based on how many hours people worked. AI can do those same tasks much faster, which could mean less billing. However, the company believes that by being the first to offer these faster and cheaper services, they will win more trust and bigger deals in the long run.

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Strong Outlook for the Future

TCS share price is expected to do better in the long run, according to market analysts. The company has reported better demand for the 2027 fiscal year. This is mostly because more companies are starting to spend money again on big tech projects that they had put on hold. Contract bookings remain strong, and the push for ‘AI-first’ solutions is helping TCS stay ahead of the curve. While foreign investors have sold some stakes recently due to uncertainty, the company's focus on staying relevant is starting to show results in its performance.

The immediate resistance for TCS shares was at Rs. 2,627, and the support was near Rs. 2,594. The stock’s price-to-earnings (PE) ratio was about 19.85, lower than the general sector average. This suggested the stock might be well-priced for those who believe in its long-term AI plan. As the company continues to put AI into its DNA, it is proving that it can change with the times rather than being left behind.

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FAQs

1. Why did TCS share price rise?

TCS shares gained 1.71% as investors reacted positively to the company’s stronger AI strategy and sector-wide recovery. After a month of decline, the stock saw buying interest at lower levels. The partnership with OpenAI and improved demand outlook for FY2027 also helped improve market sentiment. Many investors see this as a technical rebound supported by stable fundamentals.

2. What is TCS doing in artificial intelligence?

TCS has partnered with OpenAI to provide employees access to tools like ChatGPT Enterprise and Codex. The aim is to help engineers write code faster and build smarter solutions for clients. The company wants to become an AI-led technology leader. Management is encouraging all teams to adopt AI tools in daily work processes.

3. Why did TCS lose market value?

TCS lost billions in market value earlier as investors worried that AI could reduce traditional IT billing models. Since IT companies often charge clients based on work hours, automation raised concerns about revenue pressure. Broader weakness in global tech stocks also affected sentiment. However, recent updates have eased some of these fears.

4. Is TCS stock a good buy?

TCS share price is trading at a price-to-earnings ratio of around 19.85, which is lower than the broader IT sector average. This may suggest a reasonable valuation for long-term investors. The stock also offers a 4.81% dividend yield, which adds steady income potential. Investors who believe in its AI growth plan may find current levels appealing.

5. What price levels should investors watch for TCS stock?

Traders are watching immediate resistance near Rs. 2,627 and support around Rs. 2,594. If the stock crosses resistance levels with strong volume, it could extend gains. On the downside, holding above support is important to maintain positive momentum. These levels help short-term traders manage risk while tracking broader market trends.