IBNS-CMEDIA: Market sentiment towards Wipro Ltd. diverged sharply from the broader optimism surrounding the information technology sector on Friday, with the company’s shares plunging nearly 7.9 percent in early trade, media reports said.
The stock dropped to an intraday low of Rs. 188.15 before recovering some of its losses.
However, Wipro remained under pressure and was trading more than 4 percent lower later in the session.
Wipro bucks sectoral trend
Wipro’s decline came even as several major IT stocks traded in positive territory.
Shares of Tech Mahindra, Coforge, Tata Consultancy Services (TCS) and Infosys registered gains to varying degrees, highlighting the stock-specific nature of the selloff in Wipro.
AI spending concerns trigger selloff
The stock has come under pressure amid growing concerns over artificial intelligence-related spending and demand trends across the global technology sector.
Investor sentiment weakened after US semiconductor giant Broadcom reported a weaker-than-expected outlook for AI semiconductor revenue, raising questions about the pace of spending on AI infrastructure.
Broadcom slide adds to worries
The decline in Wipro shares comes against the backdrop of a nearly 15 percent fall in Broadcom’s stock price, after the company disappointed investors with its outlook despite strong interest in AI technologies.
The development triggered concerns across global technology stocks, particularly companies linked to enterprise technology spending and digital transformation projects.
Why investors are closely watching Wipro
Wipro, one of India’s leading IT services exporters, derives a significant portion of its revenue from clients in North America and Europe.
The company has been navigating a challenging demand environment marked by cautious client spending, delayed decision-making and macroeconomic uncertainty.
While enthusiasm around artificial intelligence has fuelled optimism across the technology sector, investors remain watchful about whether AI investments will translate into meaningful revenue growth for IT services companies.
Any signs of slowing AI-related spending or weaker technology budgets tend to weigh heavily on sentiment towards the sector.
