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

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.

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.

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.