Wipro CEO resignation sparks market concerns and analyst worry

Wipro, a prominent IT giant, witnessed a dip in its shares after Thierry Delaporte's sudden resignation as CEO. The news led to concerns among analysts about the company's future direction.

New leadership brings uncertainty

Srinivas Pallia, a long-time Wipro veteran, stepped in as the new CEO, replacing Delaporte. Despite Pallia's extensive experience with the company, investors and analysts expressed worries about the unexpected change in leadership. Delaporte's departure, well before the end of his expected term in June 2025, raised eyebrows and led to a decline in Wipro's stock value.

Brokerage firms like Nomura India highlighted the need for Pallia to outline a clear strategy to regain lost revenue growth. They pointed out that Wipro has been trailing behind its competitors in revenue growth, signaling challenges ahead. Nomura India also emphasized the importance of reducing senior leadership turnover, which has been a concern for the company.

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Mixed reactions from market experts

Global brokerages like Citi and CLSA maintained a "sell" rating on Wipro's stock, citing uncertainties surrounding the new CEO's strategy execution. They emphasized the challenging task ahead for Pallia to steer Wipro back on track amidst a challenging macroeconomic environment.

Analysts at Morgan Stanley and Jefferies echoed these sentiments, expressing surprise at Delaporte's resignation and cautioning about Wipro's future performance. The market's reaction to the news was mixed, with Wipro's shares seeing a slight decline.

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