Acquisitions, strong growth outlook likely to limit downside for Wipro

Prior to the recent rally, the stock had been an underperformer

The rally in information technology (IT) stocks following Accenture’s strong outlook and a recent acquisition were the key triggers for the 5 per cent gain in Wipro’s share prices over the past week. The recent gains helped the stock outperform the BSE IT index over this period. 

Wipro, after market hours on Monday, had announced that it acquired US-based Edgile, a cybersecurity consulting provider focused on risk and compliance, information and cloud security, and digital identity. The $230-million acquisition is the company’s second in the cybersecurity space in this financial year and follows the $117-million acquisition of Australian firm Ampion.