Wipro hits highest level since April 2000

The stock has surged nearly 50% since June 30 on BSE, compared to 6% rise in benchmark index and 40% rally in IT sector index.

Wipro has rallied 4% to Rs 520, extending its previous day’s nearly 3% gain on BSE on reports that the information technology (IT) company is in race for Rs 1,500 crore India Posts devices project.

"Wipro and HCL Infosystems have qualified for technical bids for supplying 1,30,000 handheld devices to Department of Posts (DoP). The vendor for this project as per DoP is expected to be finalized by end of this month," PTI reports suggests quoting a senior government official.

The stock currently quoting at its highest level since April 2000, outperformed the market by surging nearly 50% from Rs 350 on June 30, 2013 on expectation of very healthy new deal wins in July-September quarter (Q2). The BSE benchmark index has gained 6%, while IT sector index surged 40% during the same period.

Meanwhile, Wipro said the board of directors of the company will announce its Q2 earnings on October 22.

“Wipro to continue to be a laggard and likely to post 2% quarter-on-quarter (QoQ) revenue growth in dollar terms for Q2. EBITDA margin estimated to improve marginally by 60bps QoQ due to currency benefit partially offset by two months impact of wage hikes,” says analyst at Edelweiss Securities in results preview.

However, Infosys had surprised the street by reporting better-than-expected revenue growth in dollar terms for the recently concluded quarter.