Wipro Shares Soar 3.96% After US Tariff Concerns

Wipro(WIT) shares surged by 3.96%, marking a significant rebound after hitting its lowest level since March 2020 earlier today, with an intraday decline of 5.40%.

Investor concerns over a potential US recession have been a significant factor affecting Wipro's share price. The latest round of US tariffs has exacerbated these concerns, leading to a shift in trade dynamics that has impacted the company's outlook. This uncertainty has contributed to a general sense of caution among investors, leading to a decline in Wipro's stock price.

Jefferies recently downgraded Wipro to "Underperform" and reduced its price target from $3.53 to $2.43. This downgrade has likely had a negative impact on investor sentiment, further contributing to the downward trend in Wipro's stock price. The downgrade reflects concerns about the company's ability to navigate the current economic environment and maintain its competitive edge.

Escalating US-China trade tensions have also played a role in the decline of Indian IT stocks, including Wipro. The ongoing trade dispute has created uncertainty in the global market, leading to a decline in investor confidence and a subsequent drop in stock prices. Wipro, being a major player in the IT sector, has not been immune to these broader market trends.