Over $3.5 Bn Wiped Out From M-Cap Of New-Age Tech Stocks

SUMMARY

In line with the decline in the broader market, shares of 28 new-age tech stocks under Inc42's coverage declined in a range of 0.34% to just under 8%

After being on a bull run since the second week of November, shares of travel tech major ixigo slumped 7.86% to end today's session at INR 164.65 on the BSE

Despite the bearish sentiment, shares of Nykaa, EaseMyTrip and MapmyIndia ended today’s session in the green

After showing signs of revival last week, the Indian equities market declined sharply on Monday (January 6) on concerns over human metapneumovirus (HMPV) .

In line with the decline in the broader market, shares of 28 new-age tech stocks under Inc42’s coverage declined in a range of 0.34% to just under 8%.

After being on a bull run since the second week of November, shares of travel tech major ixigo slumped 7.86% to end today’s session at INR 164.65 on the BSE. With this, ixigo emerged as the biggest loser today.

Market intelligence platform Tracxn was the second biggest loser, with its shares slipping 6.70% to INR 74.49. This was slightly higher than the stock’s 52-week low of INR 72.41.

Meanwhile, shares of MobiKwik declined 6.65% to INR 559.80, a day before it is scheduled to release its financials for the second quarter of the ongoing fiscal year.

Fintech major Paytm’s shares also fell 1.36% to end at INR 968.95. The bearish investor sentiment was despite positive brokerage reports about the company. On January 3, Bernstein gave the company’s shares an ‘Outperform’ rating and a price target of INR 1,100.

Other losers of the day included Swiggy, Zomato, RateGain, TAC Infosec, PB Fintech.

Despite the bearish sentiment, shares of Nykaa, EaseMyTrip and MapmyIndia ended today’s session in the green.

After bleeding in the past few weeks, shares of online travel aggregator EaseMyTrip emerged as the biggest gainer. The stock surged 4.87% to end today’s session at INR 16.23 on the BSE.

The uptick came after its ex-CEO and cofounder Nishant Pitti confirmed that there will be no more “promoter selling” from now on. Pitti sold 1.4% of his stake in the company prior to stepping down from the position of the company’s CEO.

Meanwhile, shares of beauty and personal care major Nykaa jumped 2.30% to end at INR 171.60 after the company shared strong financial projections for Q3. In an exchange filing, the company projected a strong performance for Q3 FY2025 with consolidated net revenue growth likely to be higher than mid-twenties.

Overall, bears ate away more than $3.5 Bn from the market capitalisation of new-age tech stocks. The m-cap of 31 new-age tech stocks stood at $95.08 Bn at the end of today’s trading session as against $98.68 Bn on Friday.

HMPV Scare For Markets

In the broader market, benchmark Sensex fell 1.59% to 77,964.99. Nifty 50 declined 1.62% to end the day at 23,616.05.

A key reason behind the fall in the market today was the detection of two cases of HMPV in Karnataka by the Indian Council of Medical Research via routine surveillance for multiple respiratory viral pathogens.

Commenting on the market performance, Hrishikesh Yedve, AVP of technical and derivatives research at Asit C. Mehta Investment Intermediates, said, “Nifty started positively but faced heavy selling due to the HMPV virus scare, closing sharply lower at 23,616. Technically, on the daily chart, Nifty formed a big red candle, indicating heavy selling pressure. As a result, the index has broken the 200-Days Simple Moving Average (200-DSMA) of 23,900.”

Meanwhile, Vinod Nair, head of research at Geojit Financial Services, said that uncertainty about US president-elect Donald Trump’s policies, Fed’s hawkish stance on future rate cuts, and a strong dollar further cast a dark shadow.

“Additionally, the initial Q3 consensus earnings estimate suggests a potential gradual recovery in domestic corporate earnings, which could explain the domestic market’s underperformance compared to global markets led by premium valuation,” he added.