Tata Consultancy Services (TCS) hit a new 52-week low during Friday’s trading, as the broader IT sector was weighed down by Accenture’s weak outlook and a new proposition by the Trump administration for the procurement of H-1B visas. 

The shares tumbled by 1.50% or ₹44.50 to a new low of ₹2,912 during the intraday, bringing its market cap to ₹10.54 lakh crore. The fall wiped out nearly ₹16,080 crore of the investor wealth. At the time of reporting, it was trading at ₹2,913.40. The scrip had hit a 52-week high of ₹4,494.90 on December 13, 2024. 

Apart from TCS, all the constituents of the Nifty IT index were trading in deep red. Heavyweights like Infosys declined by 1.7%, bringing its share price to ₹1,459.60, just 11.7% above its 52-week low of ₹1,307. Tech Mahindra was down by 2%, while its current share price is 17% above its 52-week low. Wipro, on the other hand, is inching closer to its one-year low of ₹228, by trading above 3%, at ₹ 238. HCL Tech shares are above by 7% their yearly low of ₹1,302.75, currently priced at ₹1,399. 

Meanwhile, Coforge has dragged the IT index down by 2.72%, trading at ₹1,548 apiece. Oracle Financial Services trailed right behind, declining by 2.52%.

The Nifty IT index has been in a downward trend for the past six sessions, as U.S. president Donald Trump recently announced a renewed $100,000 in fee for fresh H-1B visa applications, a steep increase from the earlier fee in the range of $215-5,000. Adding more blow was the recent proposal by the Department of Homeland Security (DHS) to scrap the lottery system for the procurement of the H-1B visas to introduce a wage-based system.

According to the U.S. Federal Registrar, “DHS proposes to implement a weighted selection process that would generally favour the allocation of H-1B visas to higher skilled and higher-paid aliens, while maintaining the opportunity for employers to secure H-1B workers at all wage levels, to better serve the Congressional intent for the H-1B programme.”

On the other hand, Accenture, in its earnings call, said that it expects a revenue slowdown of 1-1.5% as a result of the U.S. Federal's spending cuts during the year through August 2026. Accenture also said it would be laying off employees while pivoting towards Artificial Intelligence. 

These cues sent the IT stocks into a spin, which had seen a short relief period following the Fed's rate cut. The Nifty IT index has slid by 4.77% in a month, 9.11% in six months, and nearly 22% year-to-date (YTD).