New-Age Tech Stocks Slump In Line With The Broader Market, CarTrade Biggest Gainer This Week
Amid concerns over the outcome of the 2024 general elections, the broader equity market experienced a significant slump this week, which saw Indian new-age tech stocks taking a sharp nosedive. Within the tumultuous market, the majority of new-age technology stocks did not escape unscathed, as seventeen out of the twenty stocks under observation fell by varying margins, ranging from 0.8% to 9% on the Bombay Stock Exchange (BSE).
MapmyIndia faced the steepest decline, losing 8.8% of its value, while shares of EaseMyTrip and PB Fintech dropped by more than 7% each. Other notable declines included Zaggle which fell by 6.2%, and DroneAcharya, Paytm, and Tracxn, each of which saw a slump of over 5%.
Among those that faced a downturn, Nazara, Yudiz, Yatra, Nykaa, and ideaForge were notable names that failed to buck the trend, while TAC Infosec, after a three-week stint as a top performer among new-age tech stocks, saw a minor decrease of around 1% on the National Stock Exchange (NSE) this week.
In stark contrast, CarTrade emerged as the beacon of resilience amidst the market turmoil, boasting a gain of 24.5% on the BSE buoyed by impressive quarterly results. Other gainers in the tumultuous week included Mamaearth and Zomato, each witnessing a growth of 2%.
The wider market wasn’t immune to the pessimistic sentiment, with benchmark indices Sensex and Nifty50 falling by 1.64% and 1.87%, respectively. However, the market somewhat recuperated on Friday, with Sensex and Nifty50 marginally gaining to close at 72,664.47 and 22,055.20, respectively.
Market analysts have weighed in on the week’s events, highlighting the prevailing caution among investors caused by the approaching general elections, coupled with the domestic market’s hefty valuation. The concerns about the elections were accentuated due to a lower voter turnout, adding to the market’s cautious stance.
Despite the dip in earnings growth, the performance of most companies for Q4 remained largely in line with expectations. Yet, experts forecast the tendency towards selling post-rally to persist in the short term, fueled by election-led uncertainties and other global economic factors.
The apprehension in the stock market is mirrored in the volatility seen ahead of the elections, compounded by global geopolitical tensions and anticipation of economic slowdowns. However, the domestic Initial Public Offering (IPO) scene provides a glimmer of hope, with companies like Travel Boutique Online (TBO Tek) drawing significant attention with an 86.7X subscription for its IPO, and Digit Insurance gearing up for a public issue soon.
Highlighting individual successes, CarTrade’s shares surged over 24% following its profitable fourth-quarter report. Its stock not only achieved a 52-week high but also caught the attention of substantial investors, reaffirming confidence in its growth trajectory within the digitalization of India’s automotive sector.
Conversely, Paytm found itself under pressure, touching a new low amid recent top-level exits and regulatory challenges. However, the stock managed a partial recovery towards the week’s end.
Similarly, PB Fintech, despite posting a commendable profit for the quarter, saw its shares decline. Yet, the company’s year-to-date performance remains notably strong, pointing towards the ebbs and flows characteristic of the stock market.
As the market navigates through pre-election anxiety and global economic uncertainties, the performances of new-age tech stocks serve as a reminder of the dynamic and unpredictable nature of equity markets.
