Wipro’s removal from India’s Nifty 50 benchmark reflects ongoing investor concerns amid a challenging technology market and a broader downturn in Indian equities, exposing questions over the company’s growth prospects and the impact of AI disruption.
Wipro’s latest slide has taken on added significance after the company lost its place in India’s Nifty 50 benchmark, with BSE set to replace it when the reshuffle takes effect on September 30. GuruFocus reported that Wipro shares fell another 1.1% on Monday, extending a bruising 2026 decline of about 29.5% and underscoring how far the stock has fallen out of favour. The index change is more than symbolic: it comes at a time when investors are already questioning the company’s growth outlook and its ability to keep pace with a rapidly changing technology market.
The replacement also highlights the gap between Wipro and the stock moving into its place. According to GuruFocus, BSE’s six-month average free-float market capitalisation reached ₹1.409 trillion, comfortably above Wipro’s ₹559.30 billion, while BSE shares rose 4% after the announcement and are up roughly 37% this year. Wipro’s removal is expected to feed into other benchmark-linked products too, including the Nifty 50 Equal Weight Index, which could trigger further passive portfolio adjustments.
That weakness has not come out of nowhere. Moneycontrol reported that Wipro shares fell after subdued quarterly performance and cautious guidance, with management warning about restrained discretionary technology spending. In a separate report, the same publication said the stock dropped 4.6% after second-quarter results, even though consolidated profit after tax edged higher year on year, because revenue growth remained muted and management’s outlook stayed guarded. Broker views have been mixed, reflecting uncertainty over how quickly demand can improve.
The broader technology backdrop has also turned less forgiving. Mint reported that the Nifty IT index has fallen 32% from its peak, its steepest drop since the 2008 financial crisis, as investors weigh the risk that artificial intelligence could disrupt labour-heavy outsourcing models. Wipro’s shares have also been buffeted by wider market selling, with Fortune India saying the stock at one point sank 8% to a three-year low during a broad decline in Indian equities. Against that backdrop, GuruFocus noted that Wipro still trades below its estimated fair value, but the market appears to want evidence of a durable turnaround before treating the discount as a buying opportunity.
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