Indian new-age tech stocks plunged on Monday (October 23) as the broader domestic equity market tumbled due to geopolitical tensions, weak global cues, and mixed Q2 FY24 earnings of Indian companies.
While Paytm nosedived 6.5% today despite its strong Q2 performance, Zomato fell almost 4% to INR 108.9 on the BSE.
Meanwhile, newly-listed Zaggle slumped a massive 7%, ending today’s session at INR 199.75 on the exchange.
Shares of Nazara Technologies also sinked 6.3%, while Nykaa fell 3.3% on the BSE.
While new-age tech stocks witnessed a significant uptrend last month on the back of improved investor sentiment, the volatility in the broader market in October following rising geopolitical tensions in the Middle East has begun impacting the listed startups as well.
Today, the stocks fell significantly as the benchmark indices Sensex and Nifty50 nosedived 1.26% to 64,571.88 and 1.34% to 19,281.75, respectively.
Commenting on the stock market’s performance today, Prashanth Tapse, senior VP (research) at Mehta Equities, said that the fall was also on account of concerns about the lacklustre corporate earnings of Indian companies and growing fears of global inflation and an economic downturn.
Meanwhile, Shrikant Chouhan, head of equity research (retail) at Kotak Securities, said, “Investors are already worried about further interest rate hike and inflation, and with the addition of the Israel-Hamas conflict, the uncertainty has increased further and leading to weak sentiment in global equities.”
He observed that the Nifty has formed a long bearish candle on daily charts, indicating further weakness from the current levels.
The market will remain closed on Tuesday on account of Dussehra. Analysts expect the volatility to continue when the market opens on Wednesday.
IndiaMART, RateGain, and DroneAcharya are among the new-age tech stocks scheduled to report their financial statement for Q2 FY24 and H1 FY24 this week.
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