TCS market cap falls below Rs 10 lakh cr amid AI-led selloff; loses 4th spot to ICICI Bank

TCS on 1 year low : Amid rising concerns over artificial intelligence-led disruption and weaker-than-expected US jobs data, India’s IT stocks extended their losing streak on February 12, 2026, with the Nifty IT index falling over 5 per cent — marking its steepest single-day decline since February 4, when it had tumbled around 5.8 per cent.

Amid the broader AI-led tech selloff, ICICI Bank overtook Tata Consultancy Services (TCS) to become the fifth largest Indian company in terms of market capitalisation today. This came a day after the State Bank of India (SBI) surged past TCS to become India’s fourth-largest listed company by market capitalisation.

Shares of ICICI Bank gained nearly 2 per cent today, pushing its market capitalisation higher up to Rs 10.2 lakh crore. Meanwhile, shares of TCS dropped around 5 per cent, with market capitalisation slumping to Rs 9.99 lakh crore.

This also marks the first time when the m-cap of TCS fell below the Rs 10 lakh crore mark since December 2020.

AI Disruption, US Macro Data Weigh

Investor sentiment has turned cautious amid growing debate over whether rapid advances in AI could compress traditional IT services revenue models.

At the same time, recent US labour market data has added to uncertainty. Softer labour market readings raised concerns over a potential slowdown in the US economy, which is the largest market for Indian IT services.

Investors worry that weakening employment conditions could reduce technology spending by US corporates, impacting deal flows and revenue visibility for Indian IT companies.

Additionally, expectations of quicker US rate cuts pushed the dollar lower, eroding the currency advantage that typically supports IT sector margins. As a result, Nifty IT slipped amid broader global risk‑off cues.

Valuations Near Multi-Year Lows

Despite the sharp correction, valuation trends suggest several large-cap IT stocks are now trading close to their lower end of five-year average price-to-earnings (PE) bands.

How are IT Stocks performing?

Selling pressure was visible across large-cap and mid-cap IT names:

TCS fell 4.88 per cent to Rs 2,767.90

Infosys declined 4.93 per cent to Rs 1,399.30

Wipro slipped 4.81 per cent to Rs 218.76

Mid-cap IT counters saw even sharper declines:

Coforge plunged 6.11 per cent to Rs 1,427.50

Persistent Systems fell 4.98 per cent to Rs 5,439.00

OFSS dropped 4.97 per cent to Rs 6,859.00

Mphasis declined 3.89 per cent to Rs 2,487.60

(Disclaimer: The above article is meant for informational purposes only, and should not be considered as any investment advice. ET NOW DIGITAL suggests its readers/audience to consult their financial advisors before making any money-related decisions.)