Fund-Based Buying Lifts Wipro

Shares of Wipro gained 3 per cent to settle at Rs 1,251.10 on the Bombay Stock Exchange (BSE) today, recovering from an intraday low of Rs 1,205 on hectic institutional buying.

Up to 4.92 lakh shares of the company changed hands on the BSE. Wipro climbed 18 per cent in 13 sessions, from Rs 1,063 on August 6, 2002.

Dealers attributed the rise in the scrip to earlier reports that the company had witnessed an increase in outsourcing.

However, analysts said the rise in Wipro came on the back of a firm US market, as fundamentally nothing has changed for the company.

 

They feel the company will face tremendous pressure in its revenues following the slowdown in the telecom sector. Wipro derives a substantial percentage of its revenue from the telecom sector.

Last week, Wipro, India's third-largest software exporter, reported that its was restating financial results for the last quarter, due to higher losses in Wipro GE Medical Systems Ltd unit.

Wipro restated its profits when it filed its quarterly financial statements for the quarter ended June 30, 2002, on Form 6-K with the US Securities and Exchange Commission.

Wipro GE Medical Systems is a joint venture controlled by GE Medical Systems. While Wipro holds a 49 per cent stake in this venture, GE Medical Systems, a division of General Electric Company, holds 51 per cent.