Wipro (NYSE:WIT) shares soared nearly 8% on Monday, marking their best trading day in almost four years, as India's fourth-largest IT services firm reported a positive outlook for demand recovery.

Key Highlights

1. Third-Quarter Results:

   • Wipro surpassed market expectations for revenue and profit in Q3.
   • CEO Srinivas Pallia highlighted a gradual return of discretionary spending, particularly after a challenging macroeconomic environment in 2024.

2. BFSI Segment Growth:

   • The Banking, Financial Services, and Insurance (BFSI) segment, contributing about 33% of Wipro's revenue, showed 11% year-over-year growth, signaling demand recovery in critical verticals.
   • This aligns with broader trends observed by peers like TCS, Infosys, and HCLTech, which have also indicated improving client sentiment.

3. Market and Analyst Sentiment:

   • Wipro's stock emerged as one of the top gainers on India's benchmark Nifty 50 index.
   • Eight brokerages upgraded their ratings, and 16 raised price targets, reflecting renewed investor confidence.

IT Sector Context

India's $254 billion IT services sector faced prolonged sluggish growth in 2024, influenced by:

• Global macroeconomic uncertainty.
• Inflationary pressures prompting clients to cut IT budgets.

However, Wipro and its peers now anticipate a stronger 2025, supported by:

• Stabilizing economic conditions.
• Increased spending in key verticals like BFSI and retail.

Insights via Financial APIs

For deeper financial insights into Wipro and its IT sector peers, leverage the Full Financials API to:

• Analyze revenue and profit trends across key segments.
• Compare Wipro's performance with TCS, Infosys, and HCLTech over recent quarters.