New Age Tech Stocks Rebound After ‘Black Tuesday’ In The Stock Market

Following a nosedive in share prices caused by unexpected election results, some of the new-age stocks showed improvement on Wednesday, June 5, around noon.

Mamaearth, which crashed 9.19% to INR 416.1 on Tuesday, emerged as the highest gainer during Wednesday’s session, around 11:00 AM. The shares of Honasa Consumer, parent company of Mamaearth, gained 8.62% to touch INR 452.00.

It was followed by gaming major Nazara, which saw a 14.1% decline to INR 677.25 on Tuesday, gained 6.87% during Wednesday’s trading session to touch INR 725.50.

Among others, foodtech giant Zomato gained 5.89% to reach INR 182.25, as compared to INR 172.10 at previous close. On Tuesday, Zomato shares tanked 1.71%.

Shares of PB Fintech gained 5.35% to reach INR 1303.95, as compared to INR 1237.70 at previous close.

In addition, shares of Delhivery which tanked 7.48% on Tuesday, gained 4.53% on Wednesday to reach a high of INR 377.

Markets tend to be especially volatile during and leading up to election season. Speculations, analyses by psephologists, exit polls, and political rhetoric, among other factors, tend to create significant uncertainty in the equity markets. As exit polls did not match election outcomes, the market saw a more drastic decline on Tuesday.

On Tuesday, investors in new-age tech stocks saw over $2 Bn of their wealth getting wiped off in a day as the broader domestic equity market witnessed a bloodbath.

Moreover, Sensex ended yesterday’s session trading 4,390 points, or 5.74%, lower at 72,079.05 and Nifty50 closed 1,379 points, or 5.93%, lower at 21,884.5.

In generale, other than tech stocks, the overall market is also showing slight improvement. Nifty and Sensex each surged by 2 percent around noon on June 5.