New-Age Tech Stocks Roar Back After Last Week’s Slump, EaseMyTrip Hits Upper Circuit

SUMMARY

EaseMyTrip, the biggest loser last week, hit its upper circuit; the stock ended 19.9% higher at INR 54.65 on the BSE

Zomato, which fell over 13% last week after Jefferies dropped it from its India portfolio, gained over 8% on Monday

The sharp rise in the shares of the tech startups was in line with the broader market, as both Nifty50 and Sensex ended Monday’s session 1.2% higher

After a significant slump last week, the Indian new-age tech stocks surged on Monday (December 26), in line with the recovery in the overall Indian stock market.

EaseMyTrip, the biggest loser last week, hit its upper circuit. The stock ended almost 19.9% higher at INR 54.65 on the BSE. Over 63 Lakh shares were traded today, the highest for the stock since November.

Earlier in the day, the traveltech startup announced a special programme called EMTFAMILY for its shareholders. Under the programme, EaseMyTrip’s shareholders would be enrolled on a ‘Refer Now & Earn Forever’ programme.

Meanwhile, Zomato, which fell over 13% last week after Jefferies dropped it from its India portfolio, gained over 8% on Monday, ending the session at INR 58.20.

Beauty ecommerce platform Nykaa, which has been under pressure over the last month or so, rose 4% to end Monday’s session at INR 150.55. Shares of Paytm and Delhivery, which have also been hit hard recently, ended the session up 5.7% and 1.5%, respectively, on the BSE.

The rally in most of the new-age tech stocks was not driven by business-specific developments. On Monday, the overall stock market witnessed some recovery after last week’s slump due to fears about re-emergence of Covid cases.

Benchmark indices Nifty50 and Sensex ended today’s session at 18,014.6 and 60,566.42, up 1.2% from their respective previous close.

“After a sharp fall of 3% in Nifty over the last three trading sessions, value-based buying emerged at lower levels,” said Siddhartha Khemka, head of retail research at Motilal Oswal. “In the absence of any major global events due to year-end holidays, we expect the market to remain sideways to positive based on news flows.”

The new-age tech stocks have been under pressure in 2022 so far due to macroeconomic issues as well as business-specific developments. The volatility in these stocks is likely to persist in the new year as well.

Covid-19 cases, further interest rate hikes by the Reserve Bank of India (RBI) and other central banks, and the Union Budget are some of the factors which will affect these stocks over the next month or so, as per market experts.

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