India's Wipro tanks after Q1 results disappoint
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Wipro's shares dropped the most in more than four years on Monday morning as investors punished India's no. 4 IT services firm for its poor growth at a time when rivals talked of a return of client spending and posted strong results.
Shares of the company were down about 8.5% as of 09:46 a.m. IST, making it the top loser on the Nifty IT index, which is down 0.4%.
The company's 3.8% drop in June quarter revenue missed analyst expectations and was in contrast to the better-than-expected results at Tata Consultancy Services, Infosys and HCLTech, which raised hopes of a demand recovery in the $254 billion sector.
While a sequential improvement in the key banking and financial services vertical hinted at early signs of recovery at Wipro, its deal wins were not as encouraging when compared to peers, analysts at Morgan Stanley said, adding that they expect Wipro to continue underperforming its peers.
