Wipro shares jump nearly 14% after Q3 results beat estimates
The company's market capitalisation jumped from Rs 18,168.68 crore to Rs 2,61,217.37 crore in early deals.
Shares of Wipro on Monday jumped nearly 14%, adding Rs 18,168.68 crore to its market valuation, after the IT company's December quarter earnings beat estimates.
The stock zoomed 13.10% to reach its 52-week high of Rs 526.45 on the BSE.
At the NSE, it rallied 13.65% to Rs 529--its 52-week peak.
It was the biggest gainer among the Sensex and Nifty firms.
The company's market capitalisation (mcap) jumped Rs 18,168.68 crore to Rs 2,61,217.37 crore in early deals.
Other IT stocks -- Tech Mahindra, Infosys, HCL Technologies, and Tata Consultancy Services -- also saw frenzied buying.
The BSE Information Technology index traded nearly 2% higher.
Benchmark equity indices hit record peaks in early trade on Monday, with the Sensex breaching the 73,000 milestone for the first time and the Nifty surging past the 22,000-mark, driven by a sharp rally in IT stocks.
IT company Wipro on Friday posted a nearly 12% decline in consolidated net profit to Rs 2,694.2 crore in the December quarter amid a "cautious" demand environment and clients making conservative investments.
Vikas Jain, Senior Research Analyst at Reliance Securities view the Wipro results as better-than-expected.
Wipro's competitor Infosys posted a 7.3% decline in net profit, while Tata Consultancy Services and HCL reported an 8.2% and 6.2% increase in consolidated profit in the this quarter of the ongoing fiscal.
"Wipro's Q3 FY24 performance suggests inflection. Revenues (-1.7 pc on constant currency terms, quarter-on-quarter) came towards the upper end of the guided band, a first in the past four quarters," according to a report by JM Financial Institutional Securities Ltd.
Wipro's consolidated revenue from operations fell 4.4% to Rs 22,205.1 crore during the December quarter, as against Rs 23,229 crore a year ago.
This is the fourth straight quarter when Wipro recorded decline in its IT services revenue.
Wipro said it expects de-growth or almost flat growth in revenue in the next quarter, thereby indicating a lower growth for the company for the fiscal on a year-on-year basis.