Business·2026-02-12 07:06Core Insights - State Bank of India (SBI) has overtaken Tata Consultancy Services (TCS) to become the fourth most valuable listed company by market capitalization, with ICICI Bank climbing to the fifth spot, pushing TCS further down the rankings [1] - ICICI Bank's market cap reached ₹10.18 trillion, while TCS was valued at ₹10.02 trillion [1] - TCS shares fell nearly 5% to ₹2,766, marking the lowest level since December 2020, while ICICI Bank shares rose 1.5% to ₹1,428, the highest since January 16, 2023 [2] Market Dynamics - TCS is experiencing a decline due to panic selling in global tech stocks, driven by concerns over artificial intelligence (AI) impacting software companies and profitability [3] - The Nifty IT index dropped nearly 5%, down 11.7% year-to-date, reaching its lowest level since April 2025 [4] - Major IT firms like Wipro, Coforge, LTIMindtree, and TCS have seen significant declines in their stock prices, with Wipro leading the fall at 16.8% [4] Financial Performance - TCS reported a 13.9% decline in net profit for Q3FY26, amounting to ₹10,657 crore, down from ₹12,380 crore in the previous year [6] - The profit decline was attributed to restructuring expenses, one-time charges from changes in labor codes, and a provision of ₹1,010 crore for a legal claim [6] - Despite the profit miss, TCS's revenue performance exceeded Bloomberg estimates [6] Industry Outlook - Analysts at Motilal Oswal are monitoring AI-native partnerships as a key driver for the next 12-14 months, expecting a pick-up in AI services deals by mid-2026 [4] - Global SaaS companies, including Salesforce, are facing heavy selling as markets anticipate faster AI-led disruptions to legacy models [5] - IT services firms remain critical for large-scale integration, governance, data modernization, and system orchestration despite the shift towards AI workspaces [5]