Wipro Plunges 3.16% to ₹174.49
- Wipro share price down 3.16% to ₹174.49
- Nifty 50 falls 1.16%
- India's biggest equity fund makes contrarian bet on IT stocks
- Wipro's market cap stands at ₹2.35 lakh crore
- Company's Q4 net profit up 24% to ₹3,054 crore
Wipro share price today is ₹174.49, down 3.16% or ₹5.69 from the previous close. This decline is part of a broader market trend where the Nifty 50 and BSE Sensex 30 indices both fell 1.16%. Officials said the IT sector is under pressure due to global economic uncertainty.
- The Nifty IT index is down 1.35% today.
- The BSE IT index has fallen 1.42%. More than 1755 stocks have declined on the National Stock Exchange, while 784 have advanced.
Meanwhile, sources confirmed that India's biggest equity fund, PPFAS Flexi Cap, is increasing exposure to beaten-down IT stocks, taking a contrarian view.
India's Biggest Equity Fund Makes Contrarian Bet on IT Stocks
India's largest actively managed equity fund, PPFAS Flexi Cap, is increasing exposure to beaten-down IT stocks.
According to sources, the fund is betting on the long-term growth potential of the IT sector.
- The fund has invested in Wipro, Infosys, and Tata Consultancy Services.
- The IT sector has been under pressure due to global economic uncertainty. However, experts said the sector has strong fundamentals and is expected to bounce back. Witnesses said the fund's contrarian bet is a sign of confidence in the IT sector.
Wipro's Q4 Net Profit Up 24% to ₹3,054 Crore
Wipro's Q4 net profit is up 24% to ₹3,054 crore. The company's revenue has increased by 14.4% to ₹23,084 crore.
Officials said the company's growth is driven by its strong execution and client relationships.
Despite the positive earnings, the company's share price has fallen due to the broader market trend.
Meanwhile, analysts said the company's valuation is attractive, and the stock is a good buy for long-term investors.
Brokerage Recommendations: Buy, Sell, or Hold Wipro?
Brokerage firms have given mixed recommendations on Wipro.
Some firms have recommended a 'buy' rating, citing the company's strong fundamentals and attractive valuation.
Others have recommended a 'hold' rating, citing the uncertainty in the IT sector.
However, no firm has recommended a 'sell' rating.
- The consensus target price for Wipro is ₹200.
- The company's market cap stands at ₹2.35 lakh crore. Experts said investors should take a long-term view and not make impulsive decisions based on short-term market fluctuations.
What Does Wipro's Fall Mean for Investors?
Wipro's fall has raised concerns among investors.
However, experts said the decline is an opportunity for long-term investors to buy the stock at a lower price.
- The company's dividend yield is 1.35%.
- The company's price-to-earnings ratio is 15.6. Meanwhile, sources confirmed that foreign institutional investors have been net buyers of Indian equities, including Wipro.
Despite the short-term volatility, the company's fundamentals remain strong, and the stock is expected to bounce back in the long term.
Outlook for Wipro and the IT Sector
The outlook for Wipro and the IT sector is uncertain.
However, experts said the sector has strong fundamentals and is expected to grow in the long term.
- The IT sector is expected to grow by 10% in the next fiscal year.
- The sector is expected to benefit from the increasing demand for digital services. Meanwhile, officials said the government is taking steps to support the IT sector, including providing incentives for companies to invest in research and development.
Despite the short-term challenges, the sector is expected to emerge stronger in the long term.