Tata Consultancy Services (TCS) IT firm of the Tata Group and India’s largest IT company unveiled its plans for annual salary increments set to be effective from March 2025 with payments commencing in April. However announcement comes on the heels of a challenging week for the company. as it faced a significant drop in market valuation amid a bearish trend in equity markets.
TCS Salary Hike Details
TCS has confirmed that it will roll out its annual salary increments in March 2025, with employees set to receive their revised pay starting April 2025. This move is part of company’s ongoing efforts to retain talent and reward employees for their contributions. While exact percentage of salary hike has not been disclosed. Announcement has been welcomed by employees amid a competitive IT job market.
Market Valuation Takes a Hit
Despite the positive news on salary hikes but TCS faced a massive blow in stock market last week. Company’s market valuation plummeted by ₹53,185.89 crore highest loss among the top 10 most-valued firms. This decline brought TCS’s market capitalization (mcap) down to ₹13.7 lakh crore.
The broader market sentiment was bearish, with combined market valuation of eight of top 10 companies eroding by ₹1,65,784.9 crore during the week. Bharti Airtel also suffered a significant drop, losing ₹44,407.77 crore in mcap, settling at ₹9.3 lakh crore.
Stock Performance and Market Trends
TCS shares dropped by 2.82% over five trading days (February 17-21), closing at ₹3,789.90 on last trading day. Decline in share price contributed to erosion in market cap, reflecting investor concerns amid a volatile market environment.
Other major players in the market also faced losses:
- Infosys: Lost ₹17,086.61 crore, bringing its mcap to ₹7,53,700.15 crore.
- ICICI Bank: Saw a decline of ₹18,235.45 crore in valuation.
- Hindustan Unilever: Experienced a drop of ₹17,962.62 crore.
Benchmark Indices Decline
The bearish trend was evident in performance of key indices. BSE Sensex declined by 628.15 points (0.82%), while Nifty 50 fell by 133.35 points (0.58%) during the week.
Reliance Industries Retains Top Spot
Despite market turmoil, Reliance Industries remained most-valued firm, followed by TCS, HDFC Bank, Bharti Airtel, ICICI Bank, Infosys, State Bank of India (SBI), Hindustan Unilever, Bajaj Finance, and ITC.
Outlook for TCS
While the short-term market performance has been disappointing, TCS continues to focus on its long-term growth strategy, including employee retention and digital transformation initiatives. Company’s decision to proceed with salary hikes in 2025 underscores its commitment to its workforce, even as it navigates challenging market conditions.
Investors and analysts will be closely watching TCS’s performance in coming quarters to assess its ability to rebound from the recent slump and capitalize on emerging opportunities in IT sector.
Stay tuned for further updates on TCS and other market developments.
