Shares of Wipro fell over 5% on Wednesday, February 4, tracking a sharp overnight sell-off in US technology and software stocks, which weighed heavily on sentiment across global IT services companies.
The primary trigger was a steep correction in US-listed software and professional services stocks. On Wall Street, technology research firm Gartner plunged as much as 25% intraday and ended the session around 21% lower, triggering a broader sell-off across the sector. Major US software names such as Adobe, Salesforce and Microsoft declined between 3% and 8%, while the Nasdaq fell more than 350 points overnight.
Wipro, which derives a significant portion of its revenue from North America, was directly impacted by the negative cues from US markets. The weakness also reflected in US-listed ADRs of Wipro, which declined around 5% overnight, further pressuring the stock during early trade in India.
Investor concerns have intensified following the launch of Anthropic PBC’s AI-powered legal automation tool, which has revived fears that rapid adoption of artificial intelligence could disrupt traditional IT services, consulting, and outsourcing models. This sparked broad-based selling across software, technology services, and professional consulting firms globally, wiping out over $285 billion in market value in a single session.
Adding to the pressure was Gartner’s weaker-than-expected full-year guidance, which pointed to a tougher demand environment as enterprises slow decision-making and defer technology spending amid fast-evolving AI-driven changes. This commentary raised near-term growth concerns for global IT service providers, including Wipro.
The fall in Wipro shares was sector-wide rather than company-specific, with other Indian IT majors such as Infosys, TCS, HCLTech and Tech Mahindra also trading with losses of over 5–6% during the session.
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