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Why did Wipro share corrected 50% from the top?



Shares of Wipro have closed below the key Rs 400-mark in the last six consecutive sessions signaling a bearish trend for the IT major. The stock, which is the cheapest among the IT biggies in terms of price, is slowly heading towards its 52-week low hit on October 17, 2022. In the current session, the Wipro stock was trading 3.8% away from the 52-week low. The stock fell 0.58% to Rs 387.45 against the previous close of Rs 389.70 on BSE.

Wipro shares have declined 42.19% in the last one year and fallen 46% in 2022, making them the biggest losers among the IT behemoths. Market cap of Wipro fell to Rs 2.12 lakh crore on BSE today. Total 0.98 lakh shares of the firm changed hands amounting to a turnover of Rs 3.79 crore on BSE. Market cap of the firm fell to Rs 2.12 lakh crore in the afternoon trade today.

On the index level too, the sentiment in the IT stocks has remained negative in the last one year and during 2022. BSE IT index has fallen 24.38% or 9,225 points to 28,618 this year. During the last one year too, the index has lost 20.40% or 7,335 points.Similarly, the Nifty IT index has defied the rally in benchmark indices and corrected 26.31% or 10,180 points in 2022. The index has declined 22.19% or 8131 points in the last one year.

Analysts have attributed the fall in IT stocks especially Wipro to the ongoing Russia- Ukraine war, the economic slowdown and the Covid-19 lockdowns across the globe, which impacted the international business of the Indian IT firms during the period.

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