Bengaluru: Shares of Wipro surged nearly 5% on Thursday, sparking a broader rally in information technology stocks after the company announced an expanded artificial intelligence (AI) partnership with US-based ServiceNow.

The Bengaluru-headquartered IT major gained as much as 4.76% during intra-day trade to touch Rs 211.20 on Indian exchanges. The positive sentiment was further reinforced by a sharp overnight rally in Wipro’s American Depositary Receipts (ADRs), which jumped more than 18% on the New York Stock Exchange.

This strong momentum positioned Wipro as one of the top-performing large-cap IT stocks in recent sessions, drawing investor attention to AI-led growth opportunities.

Bengaluru: ADR rally signals strong global investor confidence

Wipro’s ADRs surged 18.54% to close at $2.43, after rising as much as 21% during the trading session in the US. This marked the company’s biggest single-day gain since October 2008, underlining renewed global investor confidence in its growth strategy.

The sharp rally came immediately after the announcement of the expanded collaboration with ServiceNow, which is focused on deploying advanced AI-driven workflows across enterprise operations.

Market analysts believe that such a significant spike in ADRs often reflects strong institutional buying interest and can act as a leading indicator for domestic market performance.

Bengaluru: AI partnership to drive enterprise transformation

Under the enhanced partnership, Wipro will integrate its proprietary Wipro Intelligence platform — a suite of AI-powered tools — with ServiceNow’s AI Platform. The collaboration aims to enable enterprises to automate and streamline operations across key business functions.

These include IT services, human resources, procurement, and cybersecurity. The companies expect that the integration will help organisations reduce inefficiencies, improve service delivery, and strengthen security frameworks.

The use of “agentic AI workflows” — systems capable of autonomous decision-making — is expected to significantly enhance operational efficiency for clients across industries.

Wipro stated that the partnership would help address procurement bottlenecks, improve issue resolution in telecom services, and bolster cybersecurity response mechanisms, making it a comprehensive digital transformation initiative.

Bengaluru: IT sector rides on Wipro’s momentum

The rally in Wipro shares quickly spread across the broader IT sector, lifting major stocks and indices. Infosys rose 3.80%, while Tata Consultancy Services gained 1.70%.

Similarly, HCL Technologies advanced 1.46%, and Tech Mahindra climbed 0.91%. The Nifty IT index jumped over 2%, emerging as one of the top-performing sectoral indices during the trading session.

This sector-wide uptrend comes at a time when several other segments, including banking, industrial, and consumer stocks, were trading under pressure. Gains in IT heavyweights helped benchmark indices remain in positive territory, highlighting the sector’s resilience.

Bengaluru: Buyback plan adds to investor optimism

In addition to the AI partnership, investor sentiment has also been buoyed by Wipro’s upcoming share buyback programme. In April, the company’s board approved a buyback worth Rs 15,000 crore at a price of Rs 250 per share.

The buyback will involve repurchasing up to 60 crore equity shares, representing more than 5% of the company’s total equity capital. The record date for the buyback has been set as June 5.

Buybacks are often viewed positively by investors as they signal management’s confidence in the company’s valuation and future prospects. They also help improve earnings per share and return surplus cash to shareholders.

Bengaluru: Outlook remains positive for IT sector

The combined impact of strong ADR performance, AI-driven growth initiatives, and shareholder-friendly policies has positioned Wipro as a key driver of the current IT sector rally.

Market experts believe that continued investments in artificial intelligence and digital transformation will remain critical growth drivers for Indian IT companies in the coming years. Wipro’s latest move reinforces its commitment to staying competitive in this rapidly evolving landscape.

Conclusion

Wipro’s nearly 5% surge reflects growing investor confidence in its strategic direction, particularly its focus on artificial intelligence and enterprise solutions. The ripple effect across the IT sector highlights the broader optimism surrounding technology stocks.

With a strong pipeline of AI-led initiatives and a substantial buyback plan in place, Wipro appears well-positioned to sustain momentum. As global demand for digital transformation accelerates, the company’s performance could play a crucial role in shaping the trajectory of India’s IT sector.