The total market cap of the 31 new-age tech stocks under Inc42’s coverage declined to $87.89 Bn this week from $88.38 Bn last week
Of the 31 stocks, 16 fell this week in a range of 0.1% to a little over 14%. MobiKwik was the biggest loser, followed by FirstCry
While Nifty 50 fell 1% to 23,203.2, Sensex ended the week 0.98% lower at 76,619.33
New-age tech stocks continued to struggle on the Indian bourses and witnessed a mixed week as the broader domestic market registered another week of losses.
While some of these stocks saw a slight recovery this week, the total market cap of the 31 new-age tech stocks under Inc42’s coverage declined to $87.89 Bn from $88.38 Bn last week.
Of the 31 stocks, 16 fell this week in a range of 0.1% to a little over 14%. MobiKwik, which declined 8.4% last week, emerged as the biggest loser this week.
The fintech major’s shares plunged almost 14.2% to INR 471.25 on the BSE. On Friday, the company said it has partnered Piramal Finance to offer personal loans of up to INR 2 Lakh to customers.
FirstCry was the second-biggest loser of the week, with its shares nosediving almost 10%. Shares of PB Fintech also fell 7%, followed by Fino Payments Bank’s 6.5% decline.
Among the other big losers were ixigo, Swiggy, CarTrade Technology, TBO Tek, and EaseMyTrip.
Earlier this week, Swiggy said that it has received the corporate affairs ministry’s nod to incorporate a sports subsidiary, Swiggy Sports Pvt Ltd.
Meanwhile, shares of TAC Infosec rallied 10.4% this week to emerge as the top gainer this week. Nazara Technologies was the second biggest gainer, with its shares rallying 6.8%.
The gaming major’s board approved allotment of shares worth over INR 195 Cr this week via a preferential issue pertaining to its acquisition of a 47.7% stake in Moonshine Technology, the parent of Pokerbaazi. The company’s board is also scheduled to consider issuance of equity shares on a preferential basis on Monday (January 20).
Fintech major Paytm was the third-biggest gainer this week, with its shares jumping 6.2%. BlackBuck, Zomato, Go Digit, Mamaearth, Tracxn Technologies, Delhivery, and Ola Electric were among the other stocks which ended in the green this week.
Zomato was in the news for multiple reasons this week. It infused INR 500 Cr in its quick commerce arm Blinkit, and leased an over 2.5 Lakh square feet warehouse near Mumbai for its B2B supply chain arm Hyperpure. Brokerage JM Financial also reiterated its ‘buy’ rating on the foodtech major with a price target of INR 300.
Meanwhile, volatility continued in the broader market this week. Benchmark indices Nifty 50 fell 1% and Sensex declined 0.98%, ending Friday’s trading at 23,203.2 and 76,619.33, respectively.
Commenting on the broader market trends, Vinod Nair, head of research at Geojit Financial Services, said that the domestic market ended on a weak note, with large cap IT and banking stocks seeing higher underperformance due to a cautious outlook on discretionary spending for the former and subdued deposit and credit growth and tighter liquidity conditions for the latter.
“Rising uncertainty over potential economic policies from the new US administration impacted overall sentiments… the market is expected to remain cautious in the short term due to moderate Q3 expectations, while persistent FII outflows could add to higher volatility,” said Nair.
With the Donald Trump administration taking over in the US next week, the forthcoming policies and comments will also be watched, given tariffs remain a major focus, as per market analysts.
Siddhartha Khemka, head of research, wealth management at Motilal Oswal, said that the domestic equities market is expected to remain volatile and stock-specific actions are expected with Q3 FY25 earnings in full swing.
Two major new-age tech stocks, Zomato and Paytm, are scheduled to post their Q3 earnings next week.
The new-age tech stocks have lost more than $10 Bn in total market cap in January so far.
Paytm Zooms On Potential Re-Entry In MSCI Index
Reversing its 14% decline last week, shares of Paytm gained 6.2% this week. The stock ended Friday’s trading at INR 899.65 on the BSE.
The stock started gaining momentum on Tuesday after brokerage JM Financial predicted in a research note that there is a high possibility of the inclusion of Paytm in the MSCI India Standard Index.
The brokerage said it foresees a capital inflow of $169 Mn for the Vijay Shekhar Sharma-led company.
Post that, shares of Paytm gained in all three next trading sessions this week.
Meanwhile, Paytm’s current and former directors and officials settled a case with SEBI by paying a sum of INR 3.32 Cr.
Paytm also expanded its ESOP pool this week by granting 2.03 Lakh stock options under its ESOP Plan 2019.
PB Fintech Takes A Hit
Shares of PB Fintech hit a two-month low this week amid concerns about its high valuation and a raid by GST officials on one of its subsidiaries.
The stock touched its all-time high, breaching the INR 2,000 level, in the first week of January. However, it has been on a downward trend since then.
After falling more than 16% last week, PB Fintech’s shares slumped 7% this week. The stock ended Friday’s trading at INR 1,725.55 on the BSE.
It hit the INR 1,600 level earlier this week, the lowest since November 13 last year.
Recently, Morgan Stanley downgraded PB Fintech to an ‘underweight’ rating from ‘equal-weight’ earlier, citing lower-than-expected profit and high stock valuations. The brokerage also cut the price target to INR 1,400, which implies an almost 19% downside to the stock’s last close.
Meanwhile, PB Fintech said in an exchange filing this week that the GST department conducted a raid on one of its wholly-owned subsidiaries. Sources told Inc42 that the raid was in relation to PB Partners, the fintech major’s platform for insurance agents.
The company is being investigated for alleged tax evasion of about INR 80 Cr-INR 90 Cr, as per the sources.
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