Business

IIE DIGITAL DESK ;  June 5: Wipro’s share price fell sharply by nearly 8% on Friday, even as the broader stock market remained largely optimistic. The sudden decline in the IT major’s stock came immediately after it turned ex-record date for its massive ₹15,000 crore share buyback programme, triggering a wave of investor reactions and profit booking.

The stock movement reflects a typical market adjustment that occurs after a company’s shares go ex-record date for a buyback. Once the eligibility for the buyback offer ends, short-term demand often weakens, leading to selling pressure. In Wipro’s case, this technical factor played a major role in the sharp decline.

The buyback-related impact, investor sentiment was also influenced by concerns surrounding recent allegations involving the company, which added to cautious trading behaviour. While Wipro issued a response addressing the matter, the uncertainty contributed to negative market sentiment during the session.

The broader optimism in equity markets and strength in several other IT stocks, Wipro failed to follow the upward trend. The stock instead saw heavy selling pressure in early trade, dragging it down significantly compared to its peers in the sector.

Market analysts suggest that such post-ex-date corrections are not unusual, especially when large buyback announcements have already been factored into the stock price in advance. Once the immediate event passes, traders often book profits, leading to short-term volatility.

The decline in Wipro shares appears to be a combination of technical adjustment after the buyback ex-date, short-term profit booking, and sentiment-driven pressure, rather than a reflection of any sudden deterioration in the company’s core business outlook.