Information technology stocks tumbled up to 6% on Thursday, dragged lower by Wipro’s disappointing earnings and downbeat revenue outlook for the April-to-June quarter, triggering a broad selloff across the sector.
Shares of Wipro plunged 5.7% after the company missed fourth-quarter revenue estimates and warned of a 1.5% to 3.5% decline in revenue for the current quarter, citing macroeconomic headwinds and global tariff turmoil. The selloff pulled the Nifty IT index down 2.3% in early trade.
Wipro’s earnings miss and cautious guidance sent ripples across the sector. Shares of larger peer Infosys dropped 1.6% ahead of its earnings report due later in the day. LTIMindtree, HCL Technologies, and Mphasis each fell between 3% and 3.4%. Tech Mahindra, Coforge, and Persistent Systems lost between 2% and 2.4%, while Tata Consultancy Services slipped 1.7%.
The broader markets also opened lower, with the Nifty 50 slipping 0.3% to 23,368.55 and the BSE Sensex declining 0.24% to 76,868.4 as of 9:15 a.m. IST, as weakness in IT stocks weighed on sentiment.
Brokerages moved quickly to reassess Wipro’s outlook. Nuvama downgraded the stock to a “hold” and cut its target price to Rs 260 from Rs 300, citing weak Q4 performance and muted near-term guidance. Wipro’s IT services revenue for the quarter came in at $2,597 million, down 0.8% sequentially and 1.2% year-on-year in constant currency terms, falling short of analysts’ expectations.
“Low visibility for positive growth in FY26 has weakened the earlier turnaround thesis,” Nuvama said in a note, adding that it had trimmed its FY26E and FY27E EPS estimates by 3% and 3.7%, respectively, and revised the valuation multiple down to 20x FY27 PE from 22x.
The company’s guidance for Q1FY26 reflects the continued pressure from macroeconomic uncertainties, including potential impacts from global trade tariffs.
Also read | IT rout pushes Nifty below 23,400; Sensex drops over 300 points
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
Shares of Wipro plunged 5.7% after the company missed fourth-quarter revenue estimates and warned of a 1.5% to 3.5% decline in revenue for the current quarter, citing macroeconomic headwinds and global tariff turmoil. The selloff pulled the Nifty IT index down 2.3% in early trade.
Wipro’s earnings miss and cautious guidance sent ripples across the sector. Shares of larger peer Infosys dropped 1.6% ahead of its earnings report due later in the day. LTIMindtree, HCL Technologies, and Mphasis each fell between 3% and 3.4%. Tech Mahindra, Coforge, and Persistent Systems lost between 2% and 2.4%, while Tata Consultancy Services slipped 1.7%.
The broader markets also opened lower, with the Nifty 50 slipping 0.3% to 23,368.55 and the BSE Sensex declining 0.24% to 76,868.4 as of 9:15 a.m. IST, as weakness in IT stocks weighed on sentiment.
Brokerages moved quickly to reassess Wipro’s outlook. Nuvama downgraded the stock to a “hold” and cut its target price to Rs 260 from Rs 300, citing weak Q4 performance and muted near-term guidance. Wipro’s IT services revenue for the quarter came in at $2,597 million, down 0.8% sequentially and 1.2% year-on-year in constant currency terms, falling short of analysts’ expectations.
“Low visibility for positive growth in FY26 has weakened the earlier turnaround thesis,” Nuvama said in a note, adding that it had trimmed its FY26E and FY27E EPS estimates by 3% and 3.7%, respectively, and revised the valuation multiple down to 20x FY27 PE from 22x.
The company’s guidance for Q1FY26 reflects the continued pressure from macroeconomic uncertainties, including potential impacts from global trade tariffs.
Also read | IT rout pushes Nifty below 23,400; Sensex drops over 300 points
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
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