New-Age Tech Stocks Regain Momentum; Zaggle Emerges As The Biggest Gainer This Week
Indian new-age tech stocks have experienced a significant uptick this week, paralleling the broader market’s positive performance. This surge is timely, given the country’s faster-than-expected GDP growth in the third quarter of the ongoing financial year.
Out of the 19 new-age tech stocks monitored, 11 showed an upward trend this week, with gains ranging between 0.5% to more than 24%. Leading the pack, Zaggle registered as the week’s top performer. Other notable gainers include CarTrade Technologies with an 11.7% increase, PB Fintech with a 6.4% rise, Nykaa with about a 5% gain, and Zomato with a 2.2% uptick.
Conversely, eight new-age tech stocks experienced a downturn this week, with losses ranging from 0.5% to 5%. Mamaearth was the most affected, witnessing a 5.5% drop, followed closely by Yudiz, which saw a 4.4% decrease. Other stocks that saw declines include Nazara Technologies, Fino Payments Bank, DroneAcharya, Yatra, IndiaMART, and Tracxn.
In terms of the broader domestic equity market, despite some volatility, the Sensex ended the week up by 0.91% at 73,806.15, while the Nifty50 increased by 0.7% to end at 22,378.4. The stock market experienced significant gains on Friday, a day after the announcement of impressive Q3 GDP figures.
Siddhartha Khemka, head of retail research at Motilal Oswal, commented on the market’s performance, noting the surge to new highs following India’s remarkable 8.4% GDP growth in Q3. This growth was driven predominantly by robust manufacturing and showcases the country’s inherent strength and economic potential. Khemka anticipates the ongoing market momentum will continue, with the market looking to upcoming economic data for direction.
Interestingly, this week included an extra trading day to accommodate a special session for testing Disaster Recovery Sites of the exchanges.
Prashanth Tapse, senior VP (research) at Mehta Equities, remarked on the market’s volatility but acknowledged the investor confidence in Indian stocks, fueled by economic policy continuity and a solid investment climate.
Spotlight on New-Age Tech Stocks This Week
The total market capitalization of the 19 new-age tech stocks monitored stood at $55.49 billion at the end of this week, a significant increase from $44.9 billion the previous week.
Paytm shares, though volatile in the wake of banking restrictions by the Reserve Bank of India on Paytm Payments Bank, witnessed a sideways movement with a slight gain of 1.7% over the week. Analysts predict continued volatility and advise caution with the stock.
Zaggle, a fintech SaaS startup, saw an impressive jump of over 24% this week, driven by announcements of multiple partnerships. The stock has been on an upward trajectory since the end of January, with a notable gain of over 52% since then.
PB Fintech also continued its upward momentum this week, following its announcement to venture into the re-insurance space. The company confirmed receiving the certificate of registration from the Insurance Regulatory and Development Authority of India (IRDAI), allowing it to act as a Composite Insurance Broker. This move marks a transition from a Direct Insurance Broker (Life & General) to Composite, signifying a major step forward in its service offerings. PB Fintech’s stock closed the week with a 6.4% gain, underscoring a promising trajectory for the fintech sector.
As these trajectories indicate, the landscape for new-age tech stocks in India displays a vibrant and dynamic financial market, fostering excitement and anticipation for what lies ahead.
