Wipro shares declined about 8% on June 5, making the IT company one of the biggest losers on the Nifty index even as Indian equity markets rallied. The fall came after the stock turned ex-buyback following the company’s share buyback record date.
The decline was largely driven by a technical adjustment in the share price rather than any negative development in the company’s operations. Market analysts said such movements are common when stocks trade ex-buyback, as investors who purchase shares after the record date are no longer eligible to participate in the buyback offer.
Wipro recently announced a share buyback programme under which eligible shareholders can tender their shares at a price higher than the prevailing market rate. Investors holding shares on the record date qualify for the buyback, while those buying afterward do not receive that benefit.
As a result, the stock witnessed selling pressure, leading to a noticeable drop in its market value. Experts noted that similar price corrections are often seen around corporate actions such as buybacks, dividends and bonus issues.
The weakness in Wipro shares contrasted with the broader market’s positive performance. Benchmark indices Sensex and Nifty gained strongly after the Reserve Bank of India announced supportive policy measures, including a larger-than-expected interest rate cut. Banking and financial stocks led the market rally, helping lift overall investor sentiment.
Despite the sharp fall, analysts emphasized that Wipro’s business fundamentals remain unchanged. They said the company’s long-term performance will continue to depend on factors such as global demand for IT services, digital transformation spending and its ability to secure new contracts.
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