New-Age Tech Stocks Continue Their Bull Run; MapmyIndia Biggest Gainer This Week
The Indian stock market has been a scene of fervent activity lately, especially within the technology sector. This week, online travel aggregator ixigo added to the fervor by going public, marking a significant moment for new-age tech startups. After its stellar debut, ixigo’s stock surged over 25% in just four sessions, showcasing the high investor confidence in tech startups.
Reflecting the broader market optimism post the return of the NDA government, a majority of the new-age tech stocks have been riding a wave of gains. This week, fifteen of the twenty-three tech stocks analyzed reported an uptick ranging between 0.05% and a staggering 29%. MapmyIndia stood out as the standout performer with a weekly surge of 28.89%.
Apart from MapmyIndia, other new-age tech stocks such as Fino Payments Bank, Tracxn, Yudiz, Zomato, and Nykaa also ended the week on a positive note. Their gains ranged from 1.52% to 16.68%, indicating a healthy interest across various tech sectors.
Awfis, a coworking space provider, also made headlines this week by turning a profit for the first quarter of the financial year 2023-24. This achievement led to a 9% spike in its stock price during Thursday’s intraday trading. However, not all was rosy in the tech landscape, as DroneAcharya Aerial Innovations saw a small decline, alongside Paytm, PB Fintech, and Delhivery.
ixigo’s public listing undoubtedly added luster to the week, commencing with an impressive 48.5% premium on the National Stock Exchange and a 45.16% increase on the Bombay Stock Exchange. The startup’s shares continued their upward trajectory, wrapping up the week with a more than 25% increase from the listing price.
In the broader sense, the market indices, Sensex and Nifty50, both saw moderate increases. Despite the market closure on Monday due to Bakri Id, the week concluded with optimistic sentiments, largely buoyed by expectations from the newly formed government’s budgetary policies and consumption-focused measures.
Diving deeper into the tech sector, the combined market capitalization of Inc42’s covered stocks reached $54.95 billion, a slight uptick from the previous week. Significant news, such as Zomato’s potential acquisition of Paytm’s event and movie ticketing business, Paytm Insider, stirred the market. Although these talks were preliminary, the prospective deal size is rumored to be around INR 1,500 crore, highlighting the strategic moves within the tech ecosystem to expand revenue streams and market presence.
Zomato, in particular, enjoyed a decent leap in its stock price following the acquisition news, alongside favourable analyst ratings that reinforce confidence in its market positioning and growth prospects. Meanwhile, Paytm witnessed a slight setback in its stock price, breaking a three-week streak of gains amidst mixed analyst ratings and strategic refocus.
MapmyIndia’s record-setting week is attributable to strong analyst endorsements and robust financial performance, propelling its stock price to an all-time high. This ascent underscores the company’s strong positioning and growth potential within the high-growth sectors of mapping and geotech innovations.
The ongoing momentum in new-age tech stocks indicates a bullish market sentiment that favours innovation and growth. As these companies continue to evolve and expand their business models, they not only contribute to their valuation but also play a crucial role in defining the future trajectory of the Indian tech industry.
