BENGALURU, July 22 Reuters Wipro39;s shares dropped the most in over four years on Monday morning as investors punished India39;s no. 4 IT services firm for posting poor growth when its rivals talked of a return of client spending and reported strong results.

Shares of the company were down about 8 as of 1046 a.m. IST, weighing on the Nifty IT index, which was down 0.3.

Wipro on Friday reported a drop in June quarter revenue and forecast IT services revenue in the current quarter to range between a drop of 1 to an increase of 1.

Tata Consultancy Services, Infosys and HCLTech posted strong results, raising hopes of a demand recovery in the 254 billion sector.

At least six analysts cut their ratings on Wipro39;s stock since Friday39;s results, while three have cut their target price, per LSEG data.

Wipro39;s deal wins fell 11 from last year while Infosys, which gives number of bookings above 50 million, said its contract wins jumped 78 from last year.

Wipro39;s broadbased revenue pressures, muted guidance and weak deal wins suggest that growth remains a challenge for Wipro, analysts at Jefferies said in a note to clients, while those at Morgan Stanley said they expect Wipro to continue underperforming its peers in the near future.

Reporting by Kashish Tandon in Bengaluru; Editing by Nivedita Bhattacharjee

Source Reuters