Shares of IT major Wipro continued to decline on Monday, falling 4.5 per cent on weak second-quarter results announced by the Bangalore-based software firm last week.
The company on Friday declared an increase of 10 per cent in September quarter profit, at Rs 1,284.9 crore, against Rs 1,170.7 crore in the same quarter of previous financial year, a performance which market analysts said was disappointing.
Stretching the losses suffered on Friday, the stock opened on a weak note and hit a low of Rs 427.85, down 4.58 per cent on the Bombay Stock Exchange. Wipro was quoting at Rs 429.85, down 4.14 per cent in the afternoon trade on the BSE.
"Wipro's performance has come below our expectations on the information technology services revenues and the margins front. Lower than expected net profit performance was largely on account of a decline in the IT services margins coupled with higher than expected loss in foreign exchange," domestic brokerage firm Sharekhan said in a note.
After the announcement of weak Q2 figures, the scrip fell 4.54 per cent to end the week at Rs 448.40 on Friday.
Despite a firm broader market, Wipro was the biggest loser on Monday in the pack of 30 blue-chip stocks, forming Sensex. The BSE benchmark was quoting at 20,382.36, up 216.50 points in the afternoon trade.
Wipro's rival HCL Tech and TCS were also quoting firm and the 10-shares BSE-IT Index was trading at 6,140.63, up 0.12 per cent.