Wipro Warning Hits Markets Nifty Drops Early

Markets Dip in Early Trade as Wipro Leads IT Slide

Mumbai's benchmark stock indices, the BSE Sensex and NSE Nifty, slipped in early trade on Thursday, April 17, as a wave of weakness in IT stocks weighed on overall investor sentiment. The downturn followed Wipro’s Q4 earnings report, whichdespite posting a solid profitcame with a warning of a soft outlook for the current quarter.

The Sensex dropped by 362 points to touch 76,682.29, while the Nifty 50 fell 129.75 points to 23,307.45, reflecting the market's cautious mood.

What Dragged the Markets Today?

The IT sector, a heavyweight on Indian bourses, led the fall. Key tech players like:

- HCL Technologies,
 - Tata Consultancy Services (TCS),
 - Tech Mahindra, and
 - Wipro 

saw sharp sell-offs after Wipro signaled global demand uncertainties in the months ahead.

Notably, Wipro’s stock plunged over 5%, reacting to its Q4 FY25 earnings. While the company posted a 25.9% year-on-year rise in net profittouching ₹3,569.6 croreinvestors focused on its forecast of a 1.5–3.5% decline in IT services revenue for Q1 FY26.

This cautious outlook added pressure to an already fragile tech sector, which has been grappling with slow enterprise spending and macroeconomic headwinds in the U.S. and Europetwo of the industry’s biggest markets.

Learn more about how IT sector trends shape Indian markets.

Top Gainers vs. Top Losers

Among Sensex components:

Biggest Laggards

- HCL Tech
 - Tech Mahindra
 - Tata Steel
 - Larsen & Toubro
 - TCS
 - Titan

Gainers

- ICICI Bank
 - HDFC Bank
 - Bharti Airtel
 - State Bank of India (SBI)

Banking stocks offered some cushion to the falling indices, indicating resilience in domestic financials amid the tech selloff. This comes after a series of positive updates from major Indian banks related to credit growth and strong balance sheets.

Wipro's Earnings Report: Good News with a Bad Outlook

While Wipro posted strong results for the March 2025 quarter, the key focus has shifted to its weak forward guidance. With a potential drop of up to 3.5% in Q1 FY26 revenue, the company cited “uncertain macroeconomic conditions globally” for the outlook.

This has raised broader questions about the health of the Indian IT services sector, which had seen a boom during the post-pandemic digital transformation wave, but is now slowing due to cutbacks in IT budgets by global clients.

Read more about Wipro's business model and market outlook on Wikipedia.

Global Cues: Mixed Bag

Interestingly, while Indian markets faltered, Asian peers were upbeat. Indices across the continent traded higher:

- South Korea's Kospi Index
 - Tokyo’s Nikkei 225
 - Shanghai’s SSE Composite Index
 - Hong Kong’s Hang Seng
 This divergence suggests that domestic triggers, especially the Wipro-led tech weakness, were largely responsible for India’s early dip.

Meanwhile, U.S. markets closed sharply lower on Wednesday, weighed down by a combination of:

- Fed rate hike concerns,
 - Weak corporate earnings, and
 - Ongoing geopolitical tensions.
 Check out Forbes’ coverage on how U.S. markets influence India.

Foreign Investments and Oil Prices

Despite the shaky start today, Foreign Institutional Investors (FIIs) continued their buying spree. On Wednesday, they pumped in ₹3,936.42 crore into Indian equities, according to exchange data.

This suggests that long-term investor sentiment remains constructive, even though certain sectors like tech may face short-term headwinds.

On the commodities front, Brent crude oil prices climbed by 0.87%, now trading at USD 66.42 a barrel, hinting at global supply tightness amid Middle East tensions.

Learn more about Brent crude oil and its impact on India’s economy.

Previous Session Recap

It’s worth noting that despite global weakness on Wednesday, Indian equities had staged a strong comeback:

- Sensex surged 309.40 points to 77,044.29,
 - Nifty rose 108.65 points to 23,437.20,
 marking a two-week high as traders found comfort in tariff exemptions and foreign inflows.

Explore how Indian markets perform amid global volatility.

What Should Investors Watch Now?

- Earnings Season: Tech firms will continue to set the tone. TCS and Infosys updates will be crucial.
 - Macroeconomic Data: Inflation and GDP prints from both India and the U.S. could move markets.
 - Geopolitical Trends: The US-China trade war, Middle East tensions, and currency fluctuations all remain critical.
 Investors should keep an eye on diversification, perhaps focusing on banking, FMCG, and pharma stocks which are more insulated from global tech trends.

Check this guide on how to diversify your stock portfolio.

Final Thoughts

Today’s early market dip reminds us how sector-specific news, especially from heavyweight IT companies, can ripple through the broader market. While Wipro’s profit beat was a positive, its gloomy revenue guidance has injected caution among investors.

That said, strong FII flows, a resilient banking sector, and supportive macroeconomic factors continue to lend confidence to India’s medium-term equity story.

Stay tuned for earnings updates from other tech majors and global cues. And if you're feeling uncertain, remember: sometimes sitting on your hands is also a strategy.

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