Following the Reserve Bank of India’s crackdown on Paytm Payments Bank, the shares of Paytm’s parent entity, One97 Communications, crashed over 36% this week
Shares of Delhivery, which reported its maiden profitable quarter in Q3 FY24 on Friday after market hours, emerged as the biggest winner this week
In the broader market, Sensex rose 1.96% to end the week at 72,085.63 and Nifty50 gained 2.3% to 21,853.8
Indian new-age tech stocks saw a mixed performance this week, which largely saw stock-specific actions as the broader domestic equity market remained volatile due to multiple macroeconomic factors, including the interim Budget.“The drastic fall in the fiscal deficit target is leading to a reduction in bond yields, which will lead to lowering of corporate borrowing costs, increasing incentives to step up investment,” Nair said. “Furthermore, the FOMC has tempered expectations that the central bank will soon slash interest rates and that inflation in the US is continuing to cool.”“We expect the central bank to maintain its status quo. Overall, we expect the market to remain in positive territory as sentiments remain high amid commendable delivery on Budget,” Khemka added.“We believe the recent events will drag the company’s growth and elongate profitability timelines,” Jefferies said.Brokerage Macquarie also said that given the severe restrictions imposed on Paytm Payments Bank, Paytm’s ability to retain customers in its ecosystem would be impacted. Ahead of the company’s earnings announcement, Delhivery shares gained over 18% during the week. The stock made sharp gains in two consecutive sessions on Tuesday and Wednesday. The company released its Q3 numbers after market hours on Friday.“With renewals expected to gain in revenue mix, PB Fintech is likely to see rising incremental contribution from core insurance business while Paisabazaar’s incremental contribution journey is expected to be relatively gradual,” the brokerage noted.
Following the Reserve Bank of India’s (RBI’s) crackdown on Paytm Payments Bank, the shares of Paytm’s parent entity, One97 Communications, crashed over 36% this week.