Wipro shares in focus as ADRs tumble 17%; all eyes on Infosys, TCS, KPIT Tech

IT stocks, especially shares of Wipro Ltd, are in focus on Thursday after the IT major's American Depositary Receipts (ADRs) tumbled 17 per cent in overnight trading, even as Infosys Ltd, Cognizant and Accenture ended higher during the session. Wipro ADR fell 16.89 per cent to $1.870 apiece on NYSE. Infosys ADRs gained 1.53 per cent to $10.65. Widely-tracked Cognizant Technology Solutions soared 6.04 per cent to $41.07 apiece while Accenture Plc also advanced 5.38 per cent to $131.13 apiece. The stocks were up as Anthropic said the US Commerce ​Department has lifted export controls on its most advanced Fable and Mythos AI models.

A couple of brokerages have turned cautious on Wipro, among other Indian IT companies, ahead of Q1 results.

MOFSL expects Wipro to see a decline in Q1 revenue due to client-specific issues, delayed ramp-ups and
seasonal weakness. In its Q1 preview note, MOFSL said Wipro's  IT services are expected to decline 1.3 per cent QoQ CC, as delayed ramp-ups, weakness in a large client, and softer US BFSI more than offset the acquisition benefit. It said margins are expected to decline 110 basis points sequentially to 16.1 per cent, reflecting wage hikes, lower-margin deal ramp-ups, and AI investments.

The BFSI segment may remain soft due to client-specific issues and delayed ramp-ups, while Manufacturing and Healthcare are likely to stay subdued amid tariff uncertainty and seasonal weakness, it said adding that the management commentary on deal ramp-ups, deal TCV conversion, AI-led productivity, and the outlook for BFSI and large accounts will remain the key monitorables. 

JPMorgan in a recent note downgraded Wipro to 'Underweight' from 'Neutral', as it sees a sharp downside to consensus estimates not fully captured by price action so far. The foreign brokerage expects Wipro to guide for minus 2 per cent to nil sequential growth for Q2FY27.

Wipro shares are down 19 per cent in the past one month and 36 per cent in 2026 so far. IT stocks such as Tata Consultancy Services Ltd, HCL Tech and Tech Mahindra would be in focus following Wipro's sharp overnight fall. ER&D stocks such as KPIT Technologies Ltd (KPIT Tech), Tata Elxsi and Tata Technologies Ltd would also be in focus amid a selloff due to weak Q1 prospects.