The stock traded near the bottom of the Nifty index, falling 2.5 per cent to Rs 375 in a weak Mumbai market. Over the last week, shares in the firm are down 5 per cent, though broader markets remained flat over the same period.
The stock has been under selling pressure on the back of a report that global auto giant General Motors will stop outsourcing its IT needs to companies like EDS, IBM, and Wipro.
UK-based CIO website has reported that General Motors will reverse the 90 per cent outsourced, versus 10 per cent in-house arrangement under the direction of CIO Randy Mott, who joined GM last February, from HP. (See report)
It is expected that EDS, which is an outsourced services supplier for GM alongside IBM, Capgemini and Wipro, could lose out on $3 billion a year in revenues if the carmaker goes predominantly in-house, the CIO report further said.
Wipro has not commented on the story yet.
The Azim Premji-promoted firm is expected to deliver the slowest sequential dollar revenue growth in the June quarter among the frontline IT firms. (Read more)