New-Age Tech Stocks Rally In Budget Week, Paytm Emerges Biggest Gainer
This week, as Finance Minister Nirmala Sitharaman unveiled the first Union Budget of Modi government 3.0, new-age tech stocks saw substantial gains, mirroring the broader market’s positive movement. Among the tech stocks under surveillance, twenty-one out of twenty-four ended the week on a high note, with gains ranging from 0.26% to an impressive 11%. Leading the pack, shares of Paytm soared past the INR 500 mark, marking a significant milestone as the stock emerged as the week’s biggest gainer with a 10.93% jump. Other notable climbers included Nykaa, Zomato, and Mamaearth.
Traveltech startups EaseMyTrip, Yatra, and ixigo also experienced a boost following the Finance Minister’s announcement of multiple initiatives aimed at bolstering tourism. Key initiatives include support plans for the comprehensive development of the Vishnupad Temple Corridor and the Mahabodhi Temple Corridor, aimed at enhancing the spiritual tourism sector. The budget for FY25 earmarked INR 2,479.62 Cr for tourism, a significant increase of 46% from INR 1,692.10 Cr in FY24.
MapMyIndia, a leading geotech company, saw its shares climb over 5% after the announcement of plans to digitize land records in urban areas using GIS mapping. Despite the overall positive trend, three tech stocks – Awfis, TAC Infosec, and Yudiz – experienced slight declines.
Meanwhile, the broader market indices also showed robust performance. The Sensex gained 0.9%, closing at 81,332.72, while the Nifty 50 rose 1.2%, ending the week at 24,834.85.
Analysts provided mixed reviews on the market’s reaction to the budget. According to Geojit Financial Services’ head of research, Vinod Nair, the budget was a mix of populist and prudent measures that failed to ignite much excitement in the market. However, positive US GDP data and expectations of improved global demand have helped the market recover its post-budget losses.
Prashanth Tapse, senior VP of research at Mehta Equities, noted that Indian markets outperformed their global counterparts thanks to solid buying support. This resilience is attributed to the strong growth trajectory of the Indian economy and favorable earnings reports from blue-chip and mid-cap companies.
Highlighting IPO activities, the Jaipur-based D2C men’s grooming brand Menhood marked its public market debut on the NSE Emerge, further expanding the roster of listed new-age tech firms.
At the close of the week, the total market capitalisation of the covered new-age tech stocks stood at $63.27 Bn, illustrating a dynamic and evolving tech market landscape in India.
Delving deeper into individual stock performances, Paytm captured headlines with a near 11% surge after receiving approval for a significant investment in its payments arm, contributing to its impressive weekly gain. However, it’s notable that Paytm’s financial performance revealed challenges, with a reported net loss widening in the first quarter of FY24-25.
Insurtech leader Go Digit also made news with a reported 74% jump in profit after tax for Q1 FY25, reflecting strong growth and contributing to its stock’s positive trajectory. Meanwhile, Menhood’s IPO saw overwhelming investor interest, underscoring the market’s appetite for new and innovative consumer brands.
As the week concluded, the performance of these new-age tech stocks highlighted both the opportunities and challenges within India’s burgeoning tech sector, with market sentiment buoyed by strategic investments, government initiatives, and robust corporate earnings.
