Wipro shares rise over 3% amid optimism around US trade talks, rate cut hopes

IT stocks saw a sharp surge on the second day today, after US President Donald Trump said Washington and New Delhi would resume talks to resolve the ongoing trade frictions.

In a Truth Social post, Trump stated, "I am pleased to announce that India, and the United States of America, are continuing negotiations to address the Trade Barriers between our two Nations."

He added, "I look forward to speaking with my very good friend, Prime Minister Narendra Modi, in the upcoming weeks. I feel certain that there will be no difficulty in coming to a successful conclusion for both of our Great Countries!"

The counter opened its day at ₹249.30, up from the previous close of ₹249.15. The stock is continuing its upward trend and is currently trading 2.89% higher at ₹256.36 apiece on the National Stock Exchange (NSE) at 12:52 PM.

The stock has rallied 3.44% in the last 5 days. On the other hand, the shares of Wipro have advanced 6.10% in the last month and have significantly declined 8.74% in the last 6 months.

Though tariffs were not imposed on IT services, the easing of trade tensions between India and the US is expected to benefit Indian IT firms, which derive a significant share of their revenues from American clients.

The sector was already gaining momentum yesterday, with Infosys leading the rally. The company had announced that its board will meet on September 11 to consider a buyback of fully paid-up equity shares. If approved, this would mark Infosys’ first buyback since 2022, when it cleared a ₹9,300 crore proposal with a minimum buyback price of ₹1,850 per share.

Adding to the rally, hopes for a US Federal Reserve rate cut also supported sentiment. The Fed is set to hold its FOMC meeting on September 16-17, and expectations of a rate cut have risen amid weakening job numbers and pressure from the Trump administration.

The company’s market capitalisation stands at ₹2,69,159.80 crore. The stock has touched its 52 week high of ₹324.60 on January 23, 2025 and its 52 week low of ₹228 on April 7, 2025.

Wipro reported net profit of ₹3,330 crore in the first quarter of current financial year, marking an increase of 11% from ₹3,003 crore in the same period last year. On a sequential basis, however, its profit declined 7% from ₹3,570 crore.

The company's revenue from operations rose nearly 1% to ₹22,135 crore at the end of June quarter as against ₹21,964 crore in the year-ago period. In dollar terms, Wipro's revenue came in at $2,587.4 million, decrease of 0.3% quarter-on-quarter (QoQ) and 1.5% year-on-year (YoY).

In the first quarter of current financial year, the Bengaluru-based company clocked total bookings (total contract value) worth $4,971 million, up by 24.1% QoQ and 50.7% YoY in constant currency terms. The company achieved large deals, that is, deals worth $30 million or more, worth $2,666 million, an increase of 49.7% QoQ and 131% YoY in constant currency.