India’s Wipro eyes best day in four years as IT peers reiterate hopes of revival in demand Reuters
(Reuters) – Wipro (NYSE: ) shares rose about 8% on Monday, their best day in nearly four years, after India’s fourth largest IT services company joined its rivals in signaling a revival in demand.
The company beat third-quarter revenue and profit estimates on Friday, with CEO Srinivas Pallia saying, “We’re seeing discretionary spending slowly coming back” after facing macroeconomic challenges in 2024.
Wipro shares were also among the biggest percentage gainers on the benchmark Nifty 50 index, which was unchanged. At least eight brokerages raised their ratings on Wipro shares, while 16 raised their price targets, according to LSEG data.
“Wipro is witnessing an increase in discretionary spending in its BFSI (banking, financial services and insurance) segment – as evidenced by revenue growth of 11% year-on-year,” Jefferies analysts said in a note, raising both their rating and price target.
The BFSI segment accounts for about a third of the company’s revenue.
Wipro’s bet on a promising 2025 echoed similar cues from larger peers TCS, Infosys (NS:) and HCLTech.
India’s $254 billion IT services sector has been facing sluggish growth for several quarters due to global macroeconomic uncertainties and inflationary pressures, which have forced clients to rein in spending. ($1 = 86.4390 Indian Rupees)
