Tata Consultancy Services (TCS) stock may face pressure on Friday, October 9, following the US government's decision to suspend several major IT companies from its Permanent Labor Certification Program (PERM). The development comes alongside mixed brokerage assessments of TCS' Q2 FY27 results, with analysts divided over its growth prospects, operating margins and valuations.
While Nomura sees nearly 27 percent upside in TCS stock, Citi expects a further 11.4 percent downside. TCS shares closed at Rs 2,076 on Thursday, ahead of both the earnings announcement and the US decision. The stock has declined 35.7 percent so far in 2026, compared with a 15 percent fall in the Nifty 50.
Nomura maintained its Buy rating with a target price of Rs 2,630, implying nearly 27 percent upside from Thursday's close. The brokerage said deal bookings provided growth visibility and Q2 earnings were broadly in line with expectations. However, macroeconomic uncertainty and reinvestments could weigh on growth and margins in FY27.
HSBC retained its Hold rating with a target price of Rs 2,350, noting that results were slightly below expectations despite encouraging trends in banking and technology. The brokerage lowered its margin estimates slightly.
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