Wipro: Nifty exit, valuation discount, Fed re-rating chance

Wipro Limited exits the Nifty 50 on September 30, 2026, replaced by BSE Limited. Passive fund selling is weighing on the stock; Wipro is down 34 percent over one year while IT sector recovered. Yet it trades at the deepest discount in large-cap IT — P/E 12.88x vs sector 20.63x — as the Fed rate cut re-rates IT valuations upward. Q2 FY27 snapshot: Share price: Rs 164.79 (18 Sep 2026, 3:59 PM IST); down 34.29 percent YoY P/E ratio: 12.88x (sector 20.63x); P/B 1.98 52-week range: Rs 161.22 to Rs 271.09; near low, 39 percent off high Dividend yield: 5.87 percent; interim dividends Rs 13 per share in FY26 Market cap: Rs 1,70,000 crore; EPS Rs 12.79 Wipro [][***** is an AI-powered IT services and consulting firm with IT Services and IT Products divisions. Recently launched STO360, an AI operations platform for asset-intensive industries. Wipro's P/E discount of 37 percent below the sector is the deepest among large-cap IT, reflecting Nifty exit concerns but likely overdone given robust market cap and liquidity. The Fed rate cut (September 17) is a sector catalyst; Nifty IT has rallied over the past week. My view: the Nifty exit is technical. At 12.88x vs sector 20.63x, plus 5.87 percent dividend yield in a Fed rate-cut re-rating environment, this is a tactical opportunity for income investors. STO360 is a meaningful product catalyst. Support on Nifty flows by early October. Accumulate Rs 160 to 180; above Rs 200 invalidates downtrend; resistance Rs 230 to 250. Disclosure: Vijay Kumar Gupta, SEBI Registered Research Analyst, INH000020226, Vijay Gupta Advisory. SEBI registration and NISM certification do not guarantee performance or assure returns. Securities markets are subject to market risks. No holdings in the subject company.