Wipro jumped up as much as 8.1 per cent to their highest since April 2016 and was the top gainer on the Nifty IT index , which was up 2 per cent.
Wipro stocks jumped as the country's third largest IT outsources announed healthy results and a Rs 11,000-share buyback plan.
The country’s third-largest IT outsourcer has announced a second buyback in two years, of 343.75 million shares, which is about 7 per cent of the equity, aggregating a payout of ₹11,000 crore.
This amounts to nearly 25 per cent of its total cash position. The buyback, at ₹320 per share, is expected to kick off sometime in October.
According to Angel Broking analyst, the quarterly results were better than expected on all fronts, mainly driven by better-than-expected volume growth during the quarter. The brokerage has retained “Neutral” rating on the stock.
The brokerage has added that unless the company's client addition becomes strong it is unlikely to witness sustained growth which most of the large-cap IT companies deliver.
The company shares ended higher by 6.47 per cent at Rs 286.40 on the BSE. On the NSE, the stock closed higher by 6.13 per cent at Rs 285.65.