Indian new-age tech stocks witnessed a muted performance this week after three consecutive weeks of steady uptrend, despite a positive momentum in the broader equity market.
Of the 16 new-age tech stocks under Inc42’s coverage, 10 declined in a range of 0.7%-12% on the BSE this week, with the newly-listed Yudiz becoming the biggest loser.
PB Fintech, Nazara Technologies, Delhivery, Paytm, and RateGain were among the other tech startups which fell this week.
On the other hand, DroneAcharya emerged as the biggest winner by gaining 14.5%. Among the other gainers were Nykaa (up 5%), Zomato (up 3.6%), ideaForge (up 0.15%), and EaseMyTrip (up 3.3%).
In the broader market, benchmark index Nifty 50 crossed the 20K mark for the first time this week. It ended Friday’s session at 20,192.35, gaining 1.88% in the week. Sensex also rallied 1.86% to end the week at 67,838.63.
“The market is inching towards a new direction with renewed buying in auto and IT stocks in expectation of strong festive demand and a strong deal wins. Better-than-expected economic data from China and stimulus hopes further added optimism in global markets,” said Vinod Nair, head of research at Geojit Financial Services.
It must be noted that as per the data released by the Ministry of Commerce and Industry this week, India’s Wholesale Price Index (WPI) inflation remained in the negative territory at (-)0.52% in August as compared to (-)1.36% in July. Meanwhile, retail inflation declined to 6.83% in August from 7.44% in July.
Arvinder Singh Nanda, senior VP of Master Capital Services, said that in the coming days, the market may react to the macroeconomic data such as US S&P global manufacturing and services Purchasing Managers’ Index, initial jobless claims, building permits, crude oil inventories, existing home sales, the decision on Fed interest rate, and UK inflation, among others.
Now, let’s take a look at the performance of some of the new-age tech stocks this week.
The 16 new-age tech stocks under Inc42’s coverage ended the week with a total market capitalisation of $36.05 Bn as against $37.21 Bn last week.
Paytm’s Mixed Week After Its 23rd AGM
Shares of Paytm declined sharply in two consecutive trading sessions following the fintech major’s 23rd annual general meeting on Tuesday (September 12). However, they regained some momentum again during the last two trading sessions of the week, ending Friday’s trading at INR 883.65 on the BSE, 3.2% higher compared to Thursday’s close.
Overall, Paytm shares fell 2.3% this week.
Paytm, in its AGM, said that its AI stack will serve India’s financial services ecosystem for decades to come.
“Focusing on Artificial General Intelligence (AGI), we will soon become a global superpower and Paytm will lead this. AGI software stack will create opportunities to lower costs, spread farther and make our financial system safer and secure,” said founder and CEO Vijay Shekhar Sharma.
In the previous week, Paytm announced the launch of multiple new products and features to enhance the payment services.
On the other hand, during the AGM this week, Paytm officials also expressed hope about the Reserve Bank of India (RBI) lifting the restrictions imposed on its subsidiary Paytm Payments Bank on onboarding new customers by March 2024.
Commenting on the stock, Jigar S Patel, senior manager, technical research analyst, at Anand Rathi, said that the stock is likely to trade sideways in the coming week. While the downside for the stock is till INR 800, upside is expected till INR 950, he added.
Zomato Touches Another 52-Week High
Despite a muted week for a majority of the new-age tech stocks, Zomato continued its rally and gained 3.6% this week.
Shares of the foodtech startup jumped as much as 5% during the intraday trading on Friday, touching its 52-week high at 104.42 on the BSE.
After shedding some of the gains later in the day, Zomato ended the week at INR 103.04, a level last seen at the end of January 2022.
Earlier this week, Equirus Securities initiated coverage on Zomato with a ‘long’ rating and a price target (PT) of INR 135. The brokerage projected the startup to become one of the fastest-growing players in India’s internet landscape.
Meanwhile, Bernstein also spoke about Zomato “raising the profitability bar” following the company achieving profitability ahead of Street estimates in Q1 FY24. It also increased the PT for the stock to INR 120 from INR 100 earlier.
Meanwhile, Zomato, which is focusing on remaining profitable and continuing its growth, also announced the winding up of its Slovakian subsidiary this week.
Anand Rathi’s Patel said shares of Zomato are likely to continue their rally till INR 110-INR 111 in the next week. The support for the stock is at INR 95.
Following a sharp rally this year, Zomato shares are now trading just 10% below its listing price of INR 115 on the BSE.
DroneAcharya Biggest Gainer
Shares of drone startup DroneAcharya jumped 28.4% on Monday (September 11) after it announced the launch of a drone, BHUJANG (Battlefield Hybrid UAV for Joint Attack, Navigation and Guarding).
In an exchange filing, the startup said BHUJANG is a heavy lift-off, super-high-altitude, long-range drone with multiple capabilities. The launch was done on September 9.
As per DroneAcharya’s statement, BHUJANG is India’s first super high altitude multi-rotor multi-role drone, achieving an altitude of 1,500-meter above ground level from a 4,800-meter-high take-off point. It is also South Asia’s first drone with combat, transport and surveillance capabilities in a single aircraft, the startup said.
It must be noted that the drone startup is on an expansion spree. Last month, it also announced its foray into the spacetech sector.
This week, shares of DroneAcharya gained 14.5%, ending Friday’s trading at INR 174.45 on the BSE.
Anand Rathi’s Patel said that the stock is expected to trade sideways in the coming week. The support for the stock is near INR 165 while the resistance is at INR 190, he said.
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