India’s Wipro eyes best day in four years to echo hopes of revival in IT peers Reuters

(Reuters) – Wipro (NYSE: ) shares of India’s No. 4 IT services company rose nearly 8 percent after joining peers on signs of a revival in demand.

The company beat third-quarter revenue and profit estimates on Friday, and CEO Srinivas Pallia said the company’s 2018 earnings would be the same as the previous quarter. “We will see a gradual return of discretionary spending in 2024 after facing macroeconomic challenges,” he said.

Wipro shares were also among the top percentage gainers as the benchmark Nifty 50 index traded flat. At least eight brokerages upgraded their rating on Wipro stock and 16 raised their price targets, according to LSEG data.

“Wipro is seeing 11% y/y revenue growth in the BFSI (banking, financial services and insurance) segment, clearly driven by demand spending,” Jefferies analysts said, raising both their rating and price target.

The BFSI segment accounts for one-third of the company’s revenue.

Wipro’s 2025 bet echoed similar signals from its larger peer TCS. Infosys (NS:) and HCLTech.

India’s $254 billion IT services sector has faced sluggish growth in several segments due to global macroeconomic uncertainty and rising prices as customers try to control spending. ($1 = 86.4390 Indian Rupees)