Wipro’s Dollar Revenue falls in Q2; Indian Market Anticipate Lukewarm Opening

Indian markets are expected to witness a sluggish opening as Nifty futures traded 12.50 points lower at 19,545.5. This dip suggests a tepid start for the Indian stock market. In the previous trading session, the benchmark Sensex had a positive performance, rising 164.99 points to reach 65,558.89. Similarly, the Nifty index added 29.50 points and closed at 19,413.80. During the trading day, the Sensex reached a new record high of 66,064.21, while the Nifty touched a lifetime peak of 19,567.

Concerns about the growth of India’s $245 billion IT services industry were raised as Wipro Ltd reported a decline of 2.1% in dollar revenue for the June quarter. This decline follows the lackluster performances of Tata Consultancy Services (TCS) Ltd and HCL Technologies Ltd, further intensifying concerns about the industry’s growth in the current fiscal year.

Wipro has also projected that its revenue may contract again in the September quarter. The fourth-largest IT services firm in the country estimates that its revenue could decline by 2% or show a slight improvement of 1% in constant currency terms. Constant currency calculations do not account for fluctuations in exchange rates.

During the first quarter, Wipro’s revenue totaled $2.78 billion, representing a sequential decline of 2.1% and a meager 0.81% improvement compared to the same period last year. In constant currency terms, the sequential growth rate dropped by 2.8%. According to a Bloomberg survey of 20 analysts, the estimated profit was $360.9 million, with net sales reaching $2.78 billion.

Today, several companies are scheduled to announce their June quarter earnings, including Bandhan Bank, CCL Products, Coromandel Engineering, Den Networks, GTPL Hathway, Just Dial, Kesoram Ind, Sastasundar Ventures, Tata Steel Long Products, Unichem Laboratories, Vandana Knitwear, and VST Industries.

Investors and analysts will closely monitor these earnings announcements to gauge the overall performance of these companies and their potential impact on the market