Wipro Shares Surge on Revenue Beat, Signaling Demand Revival
Wipro (WIPRO.BO) witnessed a significant surge in its share prices on Monday, climbing approximately 8%. This upward trend marked the company's best performance in nearly four years.
The remarkable growth followed Wipro's impressive performance in the third quarter, surpassing revenue and profit estimates. CEO Srinivas Pallia attributed this improvement to a gradual recovery in discretionary spending, despite ongoing macroeconomic challenges.
Wipro's stock became a standout performer on the Nifty 50 index, which remained largely stable. According to LSEG data, eight brokerages upgraded their ratings for Wipro, while 16 raised their price targets.
Analysts at Jefferies noted an uptick in discretionary spending in Wipro's BFSI (banking, financial services, and insurance) segment. This surge, evidenced by an 11% year-over-year revenue increase, prompted Jefferies to both upgrade its rating and price target.
Wipro's optimistic outlook for 2025 aligns with similar projections from industry leaders TCS, Infosys, and HCLTech. The $254 billion Indian IT services sector has experienced a period of slow growth due to global economic uncertainties and inflationary pressures, leading clients to reduce spending.
However, Wipro's strong performance and the positive sentiment expressed by other major IT companies indicate a potential revitalization of the industry.