Wipro dips on weak guidance

For Q1FY2015, the management has given a dollar revenue guidance of $1,715 million-1,755 million.

Wipro has dipped over 5% to Rs 554 after company's information technology (IT) revenue guidance for the first quarter (Q1FY2015) of current fiscal was seen below estimates by some analysts.

For Q1FY2015 (April-June), the management has given a dollar revenue guidance of $1,715 million-1,755 million, which translates into a revenue growth range of (0.5) -2% as against expectations of 1.5-3.0%.

While the Q4FY2014 numbers came in well ahead of expectations, the revenue growth outlook for the next year was disappointing.

Wipro may face some selling pressure post results in the near term. Wipro has recovered strongly from lower levels after posting better-than-expected results in the last two quarters. But we believe it will still lag other larger peers such as TCS and HCL Tech in terms of revenue growth rates in FY2015, an analyst at Angel Broking said in a client note.

The stock opened at Rs 568 and touched a low of Rs 551 on the BSE. The counter has seen huge trading activity, with a combined 436,500 shares already changing hands till 0935 hours on the BSE and NSE.