TCS market cap: Amidst the backdrop of the controversy surrounding its decision to cut more than 12000 jobs in the current fiscal year Tata Consultancy Services (TCS) Indias largest IT services exporter has witnessed a rout of its market cap which slumped from Rs 16.57 lakh crore to Rs 10.93 lakh crore a decrease of Rs 5.66 lakh crore. According to market analysts TCS the flagship company of the Tata Group is going through it worst crisis since the 2008 recession when it shares had fallen by 55 percent. TCS share prices have dipped 25 percent in 2025 and experts predict the current financial could be the worst in companys history if the downfall continues. Why TCS shares are falling? According to analysts Indias stock market has witnessed a turmoil over the past few months as foreign investors are withdrawing from the market in droves amid US President Donald Trump unleashing tariff war against India and recently announcing 50% import duty on Indian exports. The IT industry once considered a favorite for FIIs is now witnessing a decline with foreign investors reducing their stake in TCS from 12.35% in June 2024 to 11.48% in June 2025 which has resulted in the companys shares falling by over 25 percent in the current financial year. The Nifty IT index has fallen 25% so far this year making it the worst-performing sector in the market as over half of the Rs 95600 crore withdrawn from India by FIIs till July 2025 has come from IT stocks alone. Why mutual funds investment increased? Meanwhile domestic mutual funds have raised their stake in TCS from 4.25% to 5.13% making fresh purchases worth Rs 400 crore in the company according to data. TCS trailing PE declined from 41x to 20x five-year CAGR stands at 8.5% while stock CAGR is 6% the data showed. Notably Indias IT sector has grown at a compounded annual rate of 12.5% over the last two decades but has underperformed the Nifty over the last three to five years. TCS layoffs According to recent media reports TCS is mulling to cut about 2 percent of its global workforce which would result in over 12000 TCS workers losing their jobs in the current financial year. The companys decision is being investigated with Jefferies warning that TCS layoffs could result in a slowdown in execution in the near term and an increase in the workforce in the long term.