Market Drop Overview
On February 2, 2026, Tata Communications Ltd saw its shares fall sharply in intraday trading, touching a low of ₹1,528.75, a drop of 5.43% from the previous session. The market showed a strong daytime correction because traders decided to reverse their short-term buying activities after two days of market gains.
The shares ended the trading session with a 5.04 per cent decline and reached their day’s minimum. The telecom sector and entire market experienced broader market movements which made the decline more significant than typical.
Comparison With Broader Market
The Indian market opening showed a decline when the Sensex benchmark index started at 167.26 points below its previous value but managed to increase its total performance to 80,803.08 through a minor gain of 0.1. The stock performance of Tata Communications showed a significant drop because it moved in an opposite direction to the index movement which showed market recovery at that time.
The stock performance showed a decline of over 4% against the Telecom-Services sector which indicated to investors that there were two possible explanations for the decline.
Technical Trends and Indicators
Technical analysis shows that Tata Communications’ stock price demonstrates a bearish trend. The stock was trading below all key moving averages — including the 5-day, 20-day, 50-day, 100-day, and 200-day averages — which showed continuous downward movement throughout all market time periods.
Its Mojo Score stood at 55.0 and received a Mojo Grade of Hold which dropped from its previous Buy rating in August 2025. The current situation shows diminishing short-term performance prospects which might lead investors to either sell their holdings or decrease their investment amounts.
Longer-Term Performance
The recent performance of Tata Communications shows that its stock price decreased more than the Sensex index since they started tracking the stock. The stock declined 1.74% during the week while the Sensex dropped 0.95% during the same period. The company experienced losses of 14.41% during the first month and 18.17% during the third month, while the Sensex dropped 5.83% during the first month and 3.79% during the third month. The stock has decreased by 15.88% since the beginning of the year while the Sensex has increased by 5.23% during the same time period.
The stock has generated positive long-term returns which it maintains through its three-year total return of 26.44% and its five-year total return of 57.19% and its ten-year total return reached 279.40% although these results fell short of market performance.
Investor Takeaways
The market experienced a sudden drop which started at midday on February 2 because of increasing price pressure that occurred while technical indicators were weak and the market moved up. The developers who investors are monitoring will show when the stock market will reach either stability or a trend change, although its recent poor performance requires them to approach the situation with caution.
