Paytm Emerges As The Biggest Gainer In Another Mixed Week For New-Age Tech Stocks
The Indian new-age tech stocks have experienced another week of mixed fortunes. However, notable rallies for some companies have propelled the combined market capitalization of these stocks to nearly $45 billion at the close of trading on Friday, February 23.
Leading the pack, Paytm reversed its recent downward trend to emerge as the week’s most significant gainer. The shares of the Vijay Shekhar Sharma-led fintech giant soared by 19.4%. Close behind, fintech SaaS startup Zaggle enjoyed a 13% rally. Drone manufacturing startup ideaForge wasn’t far off, with an 11.4% jump, followed by PB Fintech, which saw a 10.1% increase in its stock value.
Other notable performers include Nykaa, Zomato, and DroneAcharya, which recorded gains ranging from 0.6% to 5%. Logistics company Delhivery experienced a marginal increase, while Yatra’s shares remained stable, showing no change from the previous week.
Contrastingly, eight of the 19 new-age tech stocks tracked experienced declines. RateGain topped the list of those with dwindling fortunes, dropping by 7.7%, followed by gaming company Nazara, which saw a 6.2% reduction in its stock price.
Despite the mixed outcomes within the tech sector, the broader domestic equity market ended the week on a positive note. The Sensex rallied by 0.99%, while the Nifty50 saw a 0.8% increase. Both indices hit new all-time highs during Friday’s intraday trading but retreated slightly due to concerns over global macroeconomic developments.
According to Siddhartha Khemka, head of retail research at Motilal Oswal, mixed purchasing managers’ index (PMI) data for India and the United States, coupled with the Reserve Bank of India’s (RBI) hawkish stance, influenced investor sentiment negatively. Meanwhile, Prashanth Tapse, senior VP (research) at Mehta Equities, highlighted that while the market awaits new catalysts, factors like rising crude oil prices, increasing US bond yields, and high valuations could prompt continued selling by foreign institutional investors.
Regarding Paytm, the company’s stock witnessed gains over three consecutive trading sessions, touching an upper circuit of 5% at INR 407.6 during Friday’s session. This resurgence follows a period of challenges, including regulatory actions from the RBI that saw Paytm Payments Bank facing restrictions. However, recent developments, such as the RBI’s extension of certain deadlines and Paytm’s decision to switch to Axis Bank for its nodal account, have bolstered investor confidence.
On the downside, RateGain’s shares tumbled by 7.7% despite the company being recognized as an Elite Connectivity Partner by Expedia Group. RateGain also announced the launch of a new platform aimed at enhancing rate insights, which did not stem the stock’s decline.
Meanwhile, ideaForge’s stock rose by 7% on the news of its impending entry into the US market, rounding off a week of significant gains of 11.4%. Despite the recent uptick, the stock remains well below its listing price, showing that while there are rebounds, sustaining these gains might be a challenge.
In summary, the week has once again showcased the volatile and dynamic nature of India’s new-age tech stocks, underscoring both the opportunities and challenges within this burgeoning sector.
