New-Age Tech Stocks End FY24 On A Subdued Note; DroneAcharya Emerges As The Biggest Loser
The Indian stock market concluded the fiscal year 2023-24 with mixed outcomes for new-age tech stocks. While the benchmark indices Nifty50 and Sensex witnessed an uplift, gaining 1.04% and 1.13% respectively, the tech sector had its share of turbulence.
Amidst the volatility that marked the last trading week of FY24, the performance of new-age tech stocks was predominantly in the red. Out of the 19 tech stocks covered, 14 experienced a decline, ranging from a modest 0.8% to a more significant 9%. Notably, DroneAcharya topped the chart as the week’s largest decliner.
Other tech entities like RateGain, Yatra, EaseMyTrip, Nykaa, PB Fintech, ideaForge, and Nazara also faced setbacks. On the brighter side of the spectrum, companies such as Mamaearth, Zomato, MapmyIndia, CarTrade Technologies, and Paytm managed to swim against the tide, registering gains.
Mamaearth distinguished itself as the week’s standout performer, with its stock price surging by 8.7% on the BSE. Shares of the company consistently advanced across all three trading sessions of the week, which were shortened due to holidays.
Market Overview
The Indian market managed to regain some momentum towards the week’s end, described by Vinod Nair of Geojit Financial Services as a “rewarding period for the Indian market.” Despite the year concluding on a subdued note due to sustained selling pressure, a recent easing in the market was observed. Nair expresses optimism for sectors like pharma, capital goods, and infra, anticipating them to be the driving forces of growth in the coming financial year.
Election Impact And Sectoral Shifts
As India approaches its general elections, the market is poised for potentially significant shifts, influenced by the political landscape. Amidst subdued demands in sectors like FMCG and IT, a hopeful turnaround is expected, buoyed by predictions of a normal monsoon and increased demand from the US market after recent Fed rate cuts.
Spotlight On Tech Stocks
Zomato, a major player in the food tech sector, emerged with notable strength, touching a new all-time high on the BSE. Its stock price appreciated by 4.7% over the week, propelled by positive brokerage outlooks, including a price target upgrade by ICICI Securities.
Despite facing backlash over its ‘Pure Veg Fleet’ initiative, Zomato’s stock remained resilient, reflecting confidence in its growth trajectory and profitability metrics.
On the flip side, DroneAcharya’s stock plunged by 9.3%, marking it as the week’s biggest loser among tech stocks. This decline came despite the drone startup announcing significant contracts, including one from the Indian Army’s Eastern Command.
Further down the line, EaseMyTrip’s decision to invest in E-Trav Tech Limited did not resonate positively with investors, leading to a 2% dip in its stock price by the week’s conclusion.
As the new financial year unfolds, the tech sector remains a focal point for investors, with the evolving market dynamics and upcoming elections poised to influence future trends. The resilience or volatility of these stocks will be closely watched in what promises to be a year of significant economic and political developments.
