Shares of IT major Wipro nosedived on Monday by nearly 9.3 per cent over missed expectations in its April-June quarter results and a weak guidance for the next quarter.

Wipro’s stock closed Rs 51.85 down at Rs 505.35, after it reported a one per cent quarter-on-quarter (QoQ) decline in its consolidated revenue in the results declared on Friday.

According to brokerages, the early recovery in discretionary demand could potentially boost Wipro's future performance.

For the September quarter, Wipro expects revenue growth to be between minus one per cent to one per cent in constant currency terms.

Nuvama expects Wipro to continue underperforming its peers. It has maintained its 'Hold' rating on Wipro.

Meanwhile, Citi has maintained its ‘Sell’ rating on the stock with a price target of Rs 495.

On the other hand, Morgan Stanley is ‘underweight’ on Wipro with a price target of Rs 459.

Wipro reported a 4.6 per cent rise in net profit at Rs 3,003 crore for the first quarter of the current fiscal (FY25), as revenue dropped 3.8 per cent to Rs 21,964 crore.

The company added 337 employees during the quarter, reversing the trend of declining headcount after six quarters.