Wipro shares rise 5.16% intraday on India's tax holiday for cloud service providers.

Wipro surged 5.16% intraday following the Union Finance Minister's announcement of a 2047 tax holiday for foreign cloud service providers using India-based data centres, a key driver of the Nifty IT index's 2% rebound. The budget proposal, which includes a 15% safe harbour on costs for related entities, boosted investor sentiment for IT firms like Wipro, TCS, and LTI Mindtree, which lead the sector's recovery amid a broader market sell-off. The move aligns with India's AI and semiconductor infrastructure push, enhancing long-term demand for cloud and digital transformation services. A strategic partnership with Factory to scale autonomous software development further reinforced Wipro's growth narrative, though the immediate catalyst was the tax incentive. The rally reflects optimism over India's positioning as a global AI and cloud services hub, directly benefiting IT majors through expanded market opportunities and cost efficiencies.