New-Age Tech Stocks See A Mixed Week Despite Rally In Broader Market, Zaggle Biggest Gainer
Amidst a resurgent week for the broader market where benchmark indices touched fresh all-time highs, the landscape for new-age tech stocks was a blend of victories and setbacks. The period was marked notably by the outstanding performance of certain firms even as others faced declines, encapsulating a week of mixed fortunes within the Indian tech sector.
Of the 28 new-age tech stocks tracked, 15 witnessed gains ranging from a modest 0.54% to an impressive surge of nearly 23%. Fintech heavyweight Zaggle not only soared to a record-breaking high but also clinched the title of the week’s top performer with a remarkable 22.64% increase in its stock price. The roster of notable advancers included recently public SaaS entity Unicommerce, gaming giant Nazara Technologies, digital payments leader Paytm, insurance aggregator PB Fintech, and parenting portal FirstCry.
While Zaggle led the charge with its stellar rise, the week also saw new zeniths for foodtech behemoth Zomato and Mamaearth’s parent company Honasa. Zomato’s stock enhanced by 4.94%, culminating at INR 272.90, even as Honasa experienced a 7.20% dip, positioning it as the week’s most significant underperformer.
Beyond the BPC giant, 13 tech startups witnessed declines ranging from a slight 0.56% to just over 7%. The spectrum of stocks closing the week in the red included the previous week’s leader TAC Infosec, online retailer Nykaa, workspace provider Awfis, and Fino Payments Bank.
As the Nifty 50 and Sensex indices celebrated reaching new heights, the market sentiment was buoyed by positive inflows from both Domestic Institutional Investors (DIIs) and Foreign Institutional Investors (FIIs), propelled by a robust monsoon and the anticipation of heightened demand during the festive season. Vinod Nair of Geojit Financial Services highlighted the global rate-cut optimism as a vital catalyst for the rally, pointing to upcoming measures by the US Federal Reserve as potential influencers for future market direction.
The ongoing IPO frenzy within the Indian equity market evidences the vibrant investment atmosphere, with Pantomath Capital Advisors reporting a 27-month high in IPO fundraising this August. With projections suggesting that domestic companies might raise upwards of INR 1.50 Lakh Cr through public offerings in the next year, the landscape appears ripe for continued growth and enthusiasm among investors.
New entrant to the IPO arena, Ather Energy, has already made waves with its proposal for a public offering comprising fresh equity shares worth INR 3,100 Cr alongside an offer-for-sale of up to 2.2 Cr equity shares. This move mirrors the sector’s momentum and the enduring investor allure towards innovative technology firms.
Detailed Weekly Performance of Noteworthy Stocks
The aggregate market capitalisation of the 28 tech stocks under examination concluded the week at approximately $82.93 Bn, attesting to a modest growth from the prior week’s valuation of $79.38 Bn. A spotlight performer, Zaggle Prepaid Ocean Services, benefitted from buoyant investor sentiment, vaulting 22.64% to conclude at INR 437.20, with its market capitalisation likewise ascending beyond the $630 Mn threshold.
Zaggle’s triumph was underscored by a host of new contract wins, propelling its stock on an upward trajectory. Meanwhile, other sector constituents like gaming behemoth Nazara continued their aggressive expansion, garnering positive investor reactions. Nazara’s shares leapt by 14.05%, elevating its valuation to north of $950 Mn.
Despite contrasting fortunes among varied entities, the overarching narrative underscores a dynamic phase for India’s new-age tech firms. With the gears of growth continually in motion, propelled by strategic acquisitions, IPO endeavors, and global expansion plans, the sector remains a beacon of opportunity and innovation in the Indian economic landscape.
