Why Wipro Share Price is Falling

IT stocks have been under pressure recently. The sector, once considered a defensive play, is now struggling to hold investor confidence. In just the past one month, the BSE IT Index has tumbled 12.1%, reflecting broad-based weakness across major tech stocks.

There are multiple reasons for this fall. Global macroeconomic uncertainty is a big one.

Slower deal closures, weak discretionary spending by clients, and delayed project ramp-ups are also impacting revenues. Indian IT firms depend heavily on global demand, and this uncertain environment is taking a toll.

Amid this sector-wide decline, one notable name standing out for the wrong reasons is Wipro.

The stock has sharply underperformed its peers. Wipro's share price has fallen 16.5% in just one month. And in the past five trading sessions alone, it has tumbled 9.6%.

Let's take a closer look at the factors driving this steep fall in Wipro share price.

#1 Muted Outlook Ahead of Q4 Results

Wipro is under pressure as the market awaits its Q4 FY25 results. Investors are cautious, and expectations remain low.

The company is still struggling with slow deal closures and weak client spending. Global uncertainties have affected business sentiment, especially in key markets like the US and Europe.

Unlike some mid-sized IT players showing signs of steady growth, Wipro hasn't picked up pace. Its performance has remained subdued in recent quarters and the market doesn't expect any strong rebound this time either. Margins may remain flat and revenue growth is likely to be minimal.

The company has not indicated any major deal wins or changes in business outlook recently. With no strong triggers expected from the upcoming results, investor confidence has dropped.

The fall in share price reflects this weak sentiment.

#2 US Recession Fears

Wipro share price continues to fall as investor concerns rise over a possible US recession. The latest round of tariffs announced by the US has deepened trade tensions. These are not just fresh duties-many are reciprocal in nature, aimed at countries that earlier imposed tariffs on American goods. This tit-for-tat action has shaken global markets.

The worry is not just about trade restrictions but about what they signal. Businesses in the US now face higher import costs. That could lead to lower profits and reduced investment. In turn, it may hurt employment and consumer spending. All of this builds pressure on the US economy.

For Indian IT companies like Wipro, the biggest fear is what comes next. If a recession hits, US clients may slash IT budgets. New projects may be postponed. Existing deals might shrink. Wipro, which relies heavily on North American clients, is highly exposed to such risks.

So while the tariffs don't directly target IT, the ripple effect is real. The share price drop reflects concerns not about duties, but about a slowdown that could follow.

The fear of a US recession-fuelled by rising reciprocal tariffs-is a key reason why Wipro is under pressure.

What Next?

The company continues to focus heavily on large deal wins. It's overall deal pipeline remains steady across key sectors like BFSI and healthcare.

While markets like Europe are soft, Wipro has reshaped its leadership in these regions. It's working on improving client mining and execution, especially in strategic accounts.

Wipro is also betting big on AI-led transformation. Over 50,000 employees are now certified in advanced AI. It is investing in agentic AI, which goes beyond simple automation and has use cases in customer service and supply chain. This could help Wipro differentiate in a competitive IT landscape.

The company is also improving its margins. Operating margins touched a 12-quarter high. This was achieved even after wage hikes, due to disciplined cost management. The company has guided to maintain margins in a tight range going forward.

Hiring plans are also back on track. Wipro will visit campuses every quarter and continue lateral hiring. A drop in attrition has helped stabilise the talent base.

Wipro plans to return 70% or more of net income to shareholders over a rolling three-year basis starting FY26. This will be done through a mix of dividends, buybacks, and special payouts.

Investors should evaluate the company's fundamentals, corporate governance, and valuations of the stock as key factors when conducting due diligence before making investment decisions.

How Wipro Share Price has Performed Recently

In the past five days, Wipro share price has tumbled 10%. In the last month, it has slipped 16.5%.

In the last six months, its share price has fallen 11%. Additionally, in the last one year, its share price has is down marginally.

The stock touched its 52-week high of Rs 324.5 on 23 January 2025 and a 52-week low of Rs 208.4 on 4 June 2024.

About Wipro

Wipro is one of the leading global IT, consulting and business process services companies.

Wipro was incorporated in 1945 as Western India Vegetables Product Limited. It was a consumer care product manufacturer till 1980 after which it diversified into the IT services business.

With effect from 1 April 2012, the company demerged its other divisions (consumer care and lighting, medical equipment, and infrastructure engineering) into a separate company called Wipro Enterprises.

Wipro's operations can be broadly classified into IT Services, IT Products, and India State Run Enterprise.

For more details about the company, you can have a look at Wipro Company fact sheet and Wipro quarterly results on our website.

For a sector overview, you can read our IT sector report.

You can also compare Wipro with its peers on our website:

Wipro vs TCS

Wipro vs Infosys

To know what's moving the Indian stock markets today, check out the most recent share market updates here.

Happy Investing.

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