IT stocks trade under pressure today following cautious remarks from the US Fed Chief on rate cuts and Wipro’s disappointing Q1 FY26 revenue outlook
IT stocks traded under pressure on April 17, mirroring the sell-off seen in the US tech-heavy Nasdaq Composite index, which cracked 3.07 per cent yesterday. The Nifty IT index, which tracks the top 10 tech-based stocks, tumbled nearly 2.5 per cent in early trade, dragged mainly by fall in Wipro.
Sumit Pokharna, VP-Fundamental Research, Kotak Securities told Outlook Money: “Indian IT companies are under weather today on account of US Fed Chief’s cautious remarks on rate cuts amid the tariff war and Wipro’s muted Q1 FY26 revenue guidance.”
“On the global front, Federal Reserve Chairman Jerome Powell said that the Fed was focused on ensuring the impact of tariffs only has a one-time boost to inflation, dashing investor hopes that the central bank could lean toward rate cuts to cushion the potential blow to the economy,” he said.
Wipro shares crashed over 6 per cent to hit an intraday low of Rs 232.15 after it reported its Q4 FY25 numbers and cut its forward revenue guidance.
As of the time of filing this report, LTIMindtree traded 3 per cent lower. Index heavyweights Infosys, Tata Consultancy Services (TCS), and HCL Technologies traded lower by 0.5 per cent to 1.5 per cent. Barring Persistent Systems and Oracle Financial Services Software, all other constituents of the IT index traded in red.
Wipro, India’s fourth largest IT services company by market cap, reported a 26 per cent jump in net profit for the March quarter, coming in at Rs 3,570 crore. In the previous year’s corresponding quarter, it was Rs 2,835 crore. Revenue for the quarter under review stood at Rs 22,504 crore, a marginal growth of 1.3 per cent from the previous year’s Rs 22,208 crore.
The IT services major has guided a weak outlook for the first quarter of FY26, expecting its IT services revenue to decline by as much as 3.5 per cent, as global uncertainties continue to weigh on demand.
Pokharna said, “Wipro’s management has indicated that there are several instances of volume declines in existing accounts due to delays in new project initiations.”
Wipro CEO Srini Pallia said the company is continuing to invest in global talent and build up its consulting and AI strengths. "As clients remain cautious in the face of macroeconomic uncertainty, we’re focused on partnering closely with them while staying committed to consistent and profitable growth,” Pallia added.