The Wipro share price fell in early trade today after Credit Suisse cut rating of the IT firm to "underperform" from "neutral". Wipro share fell 2.31% to 378.25 compared to the previous close of 387.20 on the BSE. Wipro share opened lower at 380 level and has fallen after five days of consecutive gain.
Wipro share was among the top losers on BSE and NSE. On NSE, the share price fell 2.58% to 377.35.
Wipro share price has risen 29.58% during the last one year and gained 14.73% since the beginning of this year. The brokerage also reduced its target price to Rs 320 from Rs 370. The large cap stock was down 1.9 percent in pre-open trade.
The brokerage in a note said the market is already building in 80 bps margin expansion for next year for the company. It sees limited scope for further earnings upgrades.
The firm's margins may exhibit a bit of volatility even when on an absolute level. 11 of 43 brokerages rate the stock "buy" or 'outperform', 16 "hold", ten "underperform" and six "sell", according to analysts' recommendations tracked by Reuters
Wipro share price was trading above its 50-day and 200 day moving average 358 and 329 levels, respectively.
The share price is trading 4.32% away from its 52-week high of 396 level on BSE. On Monday, shares of Wipro touched 52-week high a day after the IT major said it has received approval from majority of its shareholders for the issue of bonus shares and increase in authorised share capital.
The large cap stock opened marginally higher at 379.70 level, but buying kicked up a gear on afternoon with scrip jumping to its highest level in 19 years at Rs 396.
In a similar fashion, stock ended at Rs 386.50 apiece, up 2.05 per cent, against previous closing price of Rs 378.75 on the national stock exchange. During the day's trade, the scrip touched an intra-day high and low of Rs 396 and Rs 379.25, respectively.
"Resolutions have been approved by members with requisite majority and shall be deemed to have been passed on February 22, 2019, being the last date of receipt of postal ballot forms/e-voting," the company said.
In January, the board of the company had approved an issue of bonus equity shares in the proportion of 1:3, that is 1 bonus equity share of Rs 2 each for every 3 fully paid-up equity shares held and a bonus issue [stock dividend on American Depositary Share (ADS)] of 1 (One) ADS for every 3 (Three) ADS held.
Post the approval, the company's authorised share capital stands increased from Rs 1,126.50 crore to Rs 2,526.50 crore by creation of additional 700 crore equity shares of Rs 2 each, it added.
Meanwhile, the Sensex and Nifty rose 304 points and 80 points respectively in morning trade today.
Edited by Aseem Thapliyal