Broader Market Bull Run Lifts Up New-Age Tech Stocks This Week, RateGain Nears $1 Bn M-Cap

Indian new-age tech stocks witnessed a revival this week, helped by the bull run in the broader market.

Thirteen out of the 19 new-age tech stocks under Inc42’s coverage gained in a range of 1% to 15% this week. Tracxn Technologies emerged as the biggest gainer, with its shares rising 14.8% during the week.

Yudiz, Yatra, Nazara Technologies, RateGain, Zaggle, and Zomato were among the other stocks which witnessed a northbound movement. Meanwhile, RateGain has now almost touched $1 Bn in market capitalisation following this week’s surge of almost 7%.

On the other hand, Paytm continued its slump, falling over 7% this week. Delhivery also declined a little over 7%, while PB Fintech and Fino Payments Bank fell over 3% each this week.

ideaForge and MapmyIndia declined 0.6% and 1.3%, respectively.

In the broader market, benchmark indices Sensex gained 2.4% to end the week at 71,483.75 while Nifty50 rose 2.3% to 21,456.65.

Prashanth Tapse, senior VP (research) at Mehta Equities, said, “There is a lot of enthusiasm amongst the investors, especially foreign investors, who are pumping in funds into domestic equities over the past few weeks post the state election results. Political stability and hopes of continuation of reforms going ahead, coupled with the US Fed’s dovish stance on rates, falling bond yields and sliding crude oil prices, has improved the sentiment.” 

However, Tapse believes that the benchmark indices could consolidate in the near term as they are in the overbought zone on the technical charts. 

Dr. Joseph Thomas, head of research at Emkay Wealth Management, also said that some consolidation around the current levels is expected in the near term. 

Now, let’s take a look at the performance of some of the major new-age tech stocks this week.

 

The total market capitalisation of the 19 new-age tech stocks under Inc42’s coverage stood at $38.48 Bn at the end of this week as against $38.35 Bn last week.

SoftBank Dumps PB Fintech Shares

After selling stakes in Zomato last week and Delhivery last month, SoftBank offloaded a significant portion of its remaining stake in the fintech major PB Fintech.

SoftBank’s SVF Python II (Cayman) Limited offloaded 2.53% of its stake, involving 1.14 Cr shares, in PB Fintech in multiple block deals worth a cumulative INR 913.7 Cr.

While many institutional investors, including Societe Generale, HDFC Mutual Fund, Goldman Sachs (Singapore) Pte, and ICICI Prudential Life Insurance Company Limited, lapped up the offloaded shares, shares of PB Fintech fell 2.3% on Friday to end the session at INR 789.45 on the BSE.

Meanwhile, the company on Thursday informed the exchanges that Income Tax (IT) officials ‘visited’ the offices of its subsidiary Paisabazaar earlier this week. PB Fintech noted that the business operations of Paisabazaar continue as usual and have not been impacted due to the survey proceedings.

Overall, PB Fintech fell 3.6% this week.

Largely helped by its improving bottom line, shares of the Policybazaar and Paisabazaar parent have gained over 22% in the last six months.

Paytm Continues To Fall

Paytm’s decision to scale down its loan disbursement business, largely affecting the BNPL or postpaid loan vertical, continues to weigh heavily on the fintech giant’s market performance.

After slumping a massive 25% last week, the stock fell almost 7.1% this week. 

Shares of Paytm ended the week at INR 605.85 on the BSE. The stock had last touched the INR 600 level or below towards the end of March this year. 

On the back of its improving outlook and bottom line, Paytm shares had gained a massive 86% this year till October. However, they are now trading only 14% higher year to date following the recent slide.

Rupak De, senior technical analyst at LKP Securities, said that Paytm seems to have reached its support level at INR 590. 

“Now, if Paytm holds above INR 590, then there is a possibility of some recovery towards INR 650-INR 700,” he said, adding that the stock might fall towards INR 500 if it slips below the support level.

Delhivery Trading At A Six-Month Low

Shares of the logistics unicorn started witnessing a significant slump in early October, days after it announced the allotment of some ESOPs. Since then, the stock has been on a downtrend. 

The company’s Q2 FY24 financial results also failed to add any major boost to the falling share prices. SoftBank selling its 1.83 Cr shares in November further added to the woes.

After a little over 7% fall this week, Delhivery shares have touched their lowest level since June 9. The stock ended the week at INR 357.6 on the BSE. In September, shares of Delhivery were trading around INR 440.

LKP Securities’ De said that Delhivery looks very weak on technical charts. It has support at INR 345 and a reversal is only possible above INR 376, he said.