Shares of Tata Consultancy Services (TCS)India’s largest IT services company, continued their steep slide on Thursday, September 25, falling to a 52-week low of ₹2,958. The stock is now down 35% from its all-time high of ₹4,494 reached on December 13 last year, making it the worst performer on the Nifty IT index in this period.

H-1B Visa Concerns Hit Indian IT Stocks

The sharp decline follows the U.S. administration’s recent announcement of new H-1B visa normswhich could significantly impact Indian IT companies reliant on onsite workers. The resulting investor concerns have wiped out nearly ₹2 lakh in market capitalisation from Indian IT giants in just a few days.

Technical Indicators Point to Oversold Conditions

TCS shares have also broken below key technical support levels, including their 50-day moving average (DMA) of ₹3,090and now trade below all major moving averages. The stock’s Relative Strength Index (RSI) is currently at 32nearing oversold territory (below 30), indicating that a potential technical rebound may be on the horizon.

JPMorgan Maintains Confidence in TCS

Despite the recent slump, major brokerages remain optimistic about TCS’s long-term prospects. Jpmorgan upgraded the stock to “overweight” on August 11 and raised its price target to ₹3,800citing attractive valuations. The brokerage noted that TCS is currently trading at a two-year forward P/E multiple of 19.7xwhich is two standard deviations below its five-year averagesuggesting strong upside potential.

JPMorgan also emphasized that TCS’s business fundamentals remain intact and expects a growth recovery from the second half of FY2026.

Analyst Consensus Remains Positive

Of the 52 analysts tracking the stock, 33 have a “buy” rating, 13 recommend “hold”and 6 suggest “sell”. The stock is now trading close to some of the lowest price targets on the street — ₹2,850 by Citi and ₹2,620 by Morningstar — indicating limited downside from current levels.

While short-term sentiment remains pressured by regulatory uncertainty and weak sector momentum, most analysts believe the fundamentals of TCS are still strong. With valuations at multi-year lows and technical indicators hinting at oversold conditions, the stage may be set for a potential recovery in the coming quarters.