According to sources in the know, some of external candidates being considered for the post of chief executive officer (CEO) included Bhaskar Ghosh of Accenture, Ritesh Idnani of Tech Mahindra (TechM), Ravi Kumar S of Infosys, and Nitin Rakesh of Mphasis, among others.
Analysts have given a thumbs up to the development and suggest the appointment of Thierry will remove uncertainty and bring back stability to the company.
"The appointment of Thierry Delaporte will be positive for Wipro. It will certainly remove the uncertainties around the company. Given that the new CEO has around 25 years of experience and sound domain knowledge, we believe Delaporte has the capability to turn around Wipro. Wipro, unlike its peers TCS and Infosys, has been unable to migrate to the digital platform, viz Cloud services, Internet of Things (IOT), among others. The company has not been able to shift its base from outsourcing to other verticals. Hence, Thierry's entry will give Wipro a better business and there will be a lot of stability from the employees' point of view as well," says AK Prabhakar, head of research at IDBI Capital.
Omkar Tanksale, senior research analyst - IT at Axis Securities, agrees.
"Delaporte's vast experience of 25 years with Capgemini will definitely help in reviving Wipro's business across verticals. He was also the CEO of the Financial Service and Strategic business unit. He also oversaw Capgemini's India operations, and led the group's transformation agenda, conceptualising and driving several strategic programs across various business units. This will help Wipro to achieve broad-based sustainable growth in the long term," Tanksale says.
As the counter has managed to cross Rs 200, the sentiment has turned positive from a short-term viewpoint. On earlier ocassions, the stock had found selling pressure as it approaced the Rs 200 mark. That said, the technical indicator Moving Average Convergence Divergence (MACD) has now crossed the zero line upward, which is a good sign as it suggests that the positive momentum may continue. Going ahead, Rs 195 remains a crucial support on closing basis.
The rally is set to become stronger and the stock can rise towards Rs 230 in the days ahead, which is the 200-days moving average (DMA). The consolidation in the range of Rs 175 to Rs 195 has given a breakout now. This is an indication that the stock may hold the positive momentum from a medium-term perspective as well. CLICK HERE FOR THE CHART