Management rejig scripts Wipro fall

K.S. Badrinarayanan | Updated on January 24, 2011

The US stocks ended on mixed note last week after Goldman Sachs' and Citigroup Inc's financial performance failed to meet street expectations even as General Electric results boosted sentiment. The S&P 500 declined 0.8 per cent, while the Dow Jones Industrial Average added 0.7 per cent. However, tech-heavy Nasdaq was the biggest loser, as the benchmark tumbled 2.4 per cent.

After witnessing a severe battering the previous two weeks, the BSE Sensex staged a recovery last week. It gained 0.78 per cent while the broader NSE's Nifty moved up 0.74 per cent.

Among the ADRs, Wipro plummeted 8.4 per cent – most of the fall came on Friday alone – to $13.71 against the previous week close of $14.97, after the company announced change of guard to top levels and reported lacklustre Q3 financial performance. Mr Girish Paranjpe and Suresh Vaswani – the current joint CEOs of Wipro's IT business – will be replaced from February 1 by a single CEO, Mr T.K. Kurien who was formerly head of a new green technology business at Wipro. The company posted a 9.60 per cent increase in consolidated net profit at Rs 1,318.8 crore for the third quarter ended December 31, 2010 as against Rs 1,203.2 crore reported in the corresponding quarter of the previous fiscal. For the fourth quarter ending March 31, Wipro expects revenues from IT services business to be in the range of $1,384-1,411 million, a sequential increase of 3 to 5 per cent.

Infosys Technologies, whose number also failed to cheer the market, fell 0.6 per cent at $70.29 ($70.73). However, Patni Computer, whose promoters' are planning to sell their stake to iGate, moved up 3.2 per cent to $20.59 (19.96).

Banking majors ended mixed. ICICI Bank finished on firm note at $46.01 ($45.1). HDFC Bank slipped to $149.89 ($150.06).

Tata Motors slipped 2.5 per cent at $25.93 ($26.6).

Dr. Reddy's Laboratories, which announced the launching of Pantoprazole Sodium Delayed-Released tablets, closed weak at $35.96 ($36.74). Pantoprazole Sodium Delayed-Released tablets had US sales of approximately $1.8 billion for the 12 months ending September 30, according to IMS Health.

Published on January 24, 2011

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