Wipro shares up by more than 1% on rupee depreciation; US rate cut expectation

Wipro’s shares are gaining today. At 10:35 a.m. IST, 3^rd December, 2025, the stock is up by 1.92%, trading at Rs 254.85. Nifty 50 index is down by 0.40% at this time.

Wipro’s shares are gaining today, probably because of two reasons. One is the expectation that US Federal Reserve will go for a 25 basis point rate cut in its monetary policy meeting on December 9^th and 10^th. The second reason is the depreciation in rupee that took place yesterday. Wipro has also announced today that it has completed the acquisition of digital transformation solutions business of HARMAN.

Depreciation in rupee against the dollar results in translation gains for Wipro

The rupee is currently hovering at near Rs 90/ dollar level. Depreciation in the value of rupee against the dollar benefits Wipro because of translation gains. Wipro currently earns around 60% of its revenues from the US/ North American market. This revenue it earns mainly in US dollars. This dollar revenue , when translated into rupee terms, increases when rupee depreciates against the dollar.

Depreciation in rupee against the dollar also makes IT exports of Wipro cheaper for its clients that pay in dollars. This also makes Wipro and other Indian IT companies more competitive.

US Federal Reserve rate cut expectation

A rate cut by US Federal Reserve may give a boost to the US economy. This in turn may increase IT spending by US companies. This may again benefit Wipro and other Indian IT companies.

Wipro is also offering AI based software solutions through its Wipro Intelligence platform. Wipro is targeting the AI market by offering AI based services instead of making investments in capital intensive data centers. This is unlike TCS which has committed to invest $1 billion in building a data center in India. Investors consider the strategy of serving the AI segment through services as safer at this point of time.

Wipro’s stock has underperformed this year

In the past 1 month, Wipro’s shares have gained 5.97%. Year-to-date (YTD) in 2025, its stock has lost 15.13%. Nifty 50 index has gained 9.20% YTD in 2025. So the stock has underperformed the Nifty 50 index by around 6% in 2025.  Nifty IT index has lost around 13.69% YTD in 2025. Wipro’s shares have also underperformed the Nifty IT index this year. Wipro’s stock currently has 6.77% weight in Nifty IT index.

Stocks that make up Nifty IT index are currently trading at an average price-to-earnings (P/E) ratio of 26.49. Wipro’s stock is currently trading at a P/E ratio of around 19.82.

Disclaimer : This content is only for informational purpose. It does not make any recommendation to act or invest.

Source: NSE, Wipro