Wipro surges on bonus issue news

DALAL STREET SPIKES

Frontline tech major Wipro jumped to Rs 1,510 with the commencement of trade after the company announced that its board will consider a bonus issue in its meeting on April 16.

The stock in intra-day trades was extremely volatile touching the day's high of Rs 1,550, before closing at Rs 1,464.80, up 3.39 per cent from its previous close. The counter witnessed volumes of 2.99 lakh shares at the BSE.

According to an analyst, major IT companies are looking at offering bonus option to the shareholders to maintain the interest among the buyers. Of late, IT companies are witnessing selling pressure on concerns of the appreciating rupee and global outsourcing backlash.

Analysts say that in the current quarter ended March 31, the financial performance of IT companies will be good. But the future will depend on the guidance given by the companies over the flow of business as well as movement on the pricing front.