New-Age Tech Stocks In Red: Zomato Plunges 12%

SUMMARY

The shares of foodtech major Zomato fell more than 12% on July 26 to close at a lifetime low of INR 41.65 on the BSE

Fintech major Paytm shares fell 7.69% to INR 699.45, the biggest fall in close to nine weeks

Shares of Policybazaar continued its downward spiral, ending 5.52% lower at INR 471.70

The new-age tech stocks were battered for the second consecutive day on Dalal Street on Tuesday (July 26). The shares of foodtech major Zomato fell more than 12% to close at a lifetime low of INR 41.65 on the BSE.

The shares opened lower at INR 47.15 and then plummeted to an all-time low of INR 41.25. From a record high of INR 169.10 in November last year, Zomato shares have witnessed a turn of fortune that has cumulatively wiped off more than 75% of investors’ wealth in the last seven months.

In the last three months, Zomato shares have gone down by more than 47%.

The intense selloff was attributed to the expiration of the mandatory one year lock-in period for shares for Zomato’s promoters, company employees, founders, and others. Zomato had listed on the stock market in July last year. Besides, the merger with loss-making Blinkit has added to investors’ worries.

The trend was seen in shares of other major new-age startups as well. Shares of One97 Communications, the parent company of fintech major Paytm, fell 7.69% on the BSE to INR 699.45. This was the biggest fall witnessed by the Noida-based company in close to nine weeks.

While the stock was more or less stable at market open, it saw an intense selloff in the last three hours of the session. Paytm shares have seen a massive turnaround ever since its yearly results were declared on May 21. The fintech player’s shares are trading 21% higher from then.

However, the shares are trading 61% lower from its all-time high of INR 1,961.05 of November 2021.

Shares of Policybazaar’s parent company PB Fintech also tanked 5.52% on the BSE to INR 471.70.

Logistics giant Delhivery also crashed nearly 6% to INR 621.15. The unicorn’s shares had soared to a record high of INR 708.45 last week, but have been falling since then.

Sanjeev Bikhchandani-led Info Edge too continued its slump, falling close to 3.84% on the BSE to close at INR 3,867.45.

Markets continue to be in the red owing to apprehensions of a rate hike by the Federal Reserve. Investors are also wary about high inflation rate.

Benchmark index BSE Sensex fell nearly 500 points to 55,268, while Nifty50 tanked 0.88% to 16,483 on July 26.

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