In early trading, Wipro shares soared by 5 per cent, marking a new 52-week high. By around 12:35 pm, Wipro’s stock price had risen by 4.91 per cent to Rs 560.60.
This surge came as part of a broader rally in IT stocks, driven by Tata Consultancy Services (TCS) posting better-than-expected Q1 results.
Following TCS’s strong performance, several IT companies saw their share prices increase, as investors gained confidence in the sector’s overall outlook.
With Wipro set to release its Q1 results on July 19, investors are optimistic about the company’s performance.
In the previous quarter (Q4FY24), Wipro reported a nearly 8 per cent year-on-year decline in profit, amounting to Rs 2,835 crore. Revenue from operations also dropped by 4 per cent year-on-year to Rs 22,208 crore.
Despite this, Emkay Global predicts a 4.1 per cent year-on-year rise in Wipro’s net profit, even with a revenue decline.
Many brokerages had projected a lukewarm outlook for IT companies’ Q1 results, but TCS’s strong performance has boosted investor confidence, further supported by a significant rally on Wall Street.
Additionally, IT stocks received a boost from a 0.1per cent decline in US inflation in June, sparking hopes of a rate cut by the US Federal Reserve in September.
Dr VK Vijayakumar noted, “The positive domestic cue is the better-than-expected numbers from TCS and positive management commentary which can lift most IT stocks.”
