Wipro Share Price Plunges Over 5% to ₹233.50 as Earnings Disappoint Street
Wipro Ltd nosedived 5.71% to close at ₹233.50 on April 17, as weaker-than-expected earnings triggered sharp sell-off in the IT major’s stock.
Key Highlights:
Wipro Ltd, one of India’s top IT services companies, faced a significant sell-off on April 17, with its share price plunging ₹14.15 or 5.71% to close at ₹233.50. The fall came after the company posted disappointing quarterly results, prompting investors to exit positions amid weak forward guidance.
Day’s Trading Summary
- Open: ₹235.00
- High: ₹237.10
- Low: ₹232.15
- Close: ₹233.50
Wipro opened marginally lower and saw sharp downward movement within the first hour of trade. The decline was intensified by bearish sentiment across IT stocks and global tech weakness.
Stock Metrics and Valuation Highlights
- Market Cap: ₹2.44 lakh crore
- P/E Ratio: 19.74
- Dividend Yield: 2.57%
- 52-Week High: ₹323.60
- 52-Week Low: ₹208.50
The stock is now down nearly 28% from its 52-week high, though it still offers a moderate dividend yield of 2.57%, appealing to some income-seeking investors.
What Triggered the Fall in Wipro Today?
Key drivers of the 5.71% plunge include:
- Q4 earnings fell short of market expectations, both on revenue and profit margins.
- Muted growth guidance for the upcoming quarter spooked analysts.
- Ongoing global tech slowdown and reduced client spending in key markets like the US and Europe.
- Pressure on mid-tier IT stocks following sector-wide derating.
Analyst Reactions and Sentiment
Brokerages are revising their targets:
- Some firms have downgraded Wipro to “Hold” or “Reduce” citing weak operational performance.
- Analysts warn of margin compression due to rising wage costs and lower deal flow.
- ₹230 is now seen as a key support level, with resistance capped at ₹245 in the near term.
What This Means for You
For traders:
- Avoid bottom-fishing until a clear base is formed near ₹230 or below.
- Watch volumes closely — high delivery percentage could signal long-term accumulation at lower levels.
For investors:
- Long-term investors may consider gradual accumulation on further dips, keeping earnings and guidance in check.
- Those seeking better earnings visibility may shift focus to Infosys, TCS, or HCL Tech.
How to Take Action
- Review Wipro’s earnings transcript and management commentary for clues on turnaround strategy.
- Track US macro trends and enterprise IT budgets, as they heavily impact Wipro’s topline.
- Wait for signs of recovery in deal wins or client retention metrics before making aggressive allocations.
Who Will Be Affected
- Retail shareholders reacting to earnings volatility.
- Tech-focused mutual funds and ETFs holding significant Wipro exposure.
- Institutional investors reevaluating positions amid global tech repricing.
Wipro Share Price Tumbles Post Earnings, Investors Stay Cautious
The Wipro share price crashed 5.71% to ₹233.50 on April 17, rattled by a weak earnings report and cautious outlook. While long-term prospects in the IT sector remain intact, near-term pain is likely as investors digest the results and reassess positions. ₹230 will be closely watched in the coming sessions for signs of bottoming out.
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