2024 Lok Sabha Election Results: New-Age Tech Stocks Suffer As Stock Markets Slump

Sharply reversing Monday’s gains for many listed tech companies, most of the Indian new-age tech stocks nosedived on Tuesday (June 4) on the back of the Indian stock market crash by around 4,000 points impacted by the early trends of the 2024 Lok Sabha Election results.

The 23 new-age tech stocks under Inc42’s coverage fell in a range of 1% to over 10% amid the market crash as of by 11.30 AM IST.

We must note that most of the exit polls had projected the Bharatiya Janata Party-led National Democratic Alliance (NDA) and incumbent Prime Minister Narendra Modi getting a comfortable majority in the Lok Sabha, leading to the Sensex rising 3.39% to 76,468.78 and Nifty50 gaining 3.25% to 23,263.90 on Monday.

Fourteen out of the 23 new-age tech stocks under Inc42’s coverage gained in the range of 0.7% to about 13% amid the rally on Monday.

However, the vote counts today so far suggest a significant gap from the exit poll predictions.

By 11.30 AM IST, the Sensex was down 3,278 points or 4.28% at 73,321 while the Nifty50 crashed almost 1,074 points or 4.61% at 22,233.35. The market continued to slump even post that.

Biggest Losers On Election Results Day

Among the new-age tech stocks, recently-listed TBO Tek emerged as the biggest loser by falling 10.4% to INR 1,296.9 on the BSE by 10.30 AM IST. We must note that the company saw a stellar IPO last month, debuting at a 50% premium.

On the other hand, the newest member among new-age tech stocks, Awfis slumped 8.5% to INR 384 on the BSE, followed by gaming major Nazara Technologies which reversed yesterday’s 12% gain to fall 7.6% to INR 728.7 amid the broader market slump.

Adding to the pressure that shares of Paytm were already facing due to regulatory issues, the broader market slump led to a 5% decline in the stock. Paytm touched the lower circuit today at INR 357.2 on the BSE.

Major names, including Mamaearth, Nykaa, and Delhivery fell between 5% and about 7% today.

Shares of other major companies, including RateGain, Zomato, PB Fintech, Do Digit, EaseMyTrip, and CarTrade, were all down between 3% to 4%.

Among these, shares of Yatra seem to be seeing the lowest dip, falling by 1.5%.

V K Vijayakumar, chief investment strategist at Geojit Financial Services, said, “The steep fall is due to the results so far falling short of the exit polls which the market had discounted yesterday. If BJP doesn’t get a majority on its own there will be disappointment and this is getting reflected in the market.”

“Also it is possible that Modi 3.0 may not be as reform-oriented as the market expected and may turn more welfare-oriented,” he added.

Together, the market cap of all the new-age tech stocks stood at $49.86 Bn by 11.30 AM IST today.

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