Swiggy Shines Amid Bloodbath In New-Age Tech Stocks

After a slight uptick on Monday, the Indian equities market continued its downward movement for the second consecutive session on Wednesday (November 13). With the benchmark indices Sensex and Nifty 50 falling over 1% each, most of the new-age tech stocks ended in the red today. 

After reporting weak financials for the first half of the ongoing fiscal year, dronetech company DroneAcharya emerged as the biggest loser. Its shares plunged 16.27% to end the day at INR 113.70. It is pertinent to mention that the shares of the BSE SME-listed company touched a fresh 52-week low of INR 110 during the intraday trade today. 

Amid this, the company said that it has secured a contract worth INR 14.80 Cr from US-based American Blast Systems (ABS).  

Meanwhile, shares of Nykaa, TBO Tek and Yatra, which reported their Q2 numbers yesterday, also ended in the red today. 

Shares of NSE Emerge-listed Menhood ended 4.73% lower at INR 165, a day after touching an all-time high of INR 178 on Tuesday. The company is slated to release its financial numbers for H1 FY25 tomorrow.

Awfis, ixigo, Paytm, Ola Electric, PB Fintech and CarTrade were among the other losers today. 

Despite this, shares of foodtech major Swiggy listed at a premium on the bourses and ended the trading session at INR 455.95, up 10.67% from the listing price of INR 412 on the BSE. 

Swiggy ended the session 16.91% higher than the issue price. The company’s market capitalisation stood at $12.09 Bn at the end of the day. 

Commenting on the listing, brokerage firm Bajaj Broking Research said that Swiggy’s IPO, which was the second largest in India in 2024, stirred up notable excitement in the market. However, early trading volatility also revealed investor caution. 

“While there’s optimism about Swiggy’s potential to capture further market share in India’s evolving food delivery and quick commerce segments, the road to profitability may be bumpy. Swiggy has shown impressive growth potential, yet persistent losses over recent fiscal years signal challenges ahead,” the brokerage said. 

Meanwhile, JM Financial initiated coverage on Swiggy with a ‘buy’ rating and a price target of INR 470. The brokerage said that the Zomato-Swiggy duopoly in the food delivery market would ensure steady growth and profits.

Meanwhile, shares of Swiggy’s rival Zomato dipped 0.94% to INR 259.02 today. Zomato’s market cap stood at $27.07 Bn at the end of today’s session. 

Besides Swiggy, Nazara Technologies and Tracxn were the only other gainers among the new-age tech stocks today. 

The decline in new-age tech stocks came as Sensex ended today’s trading session 1.25% lower at 77,690.95, while Nifty 50 slumped 1.36% to 23,559.05. The benchmark indices have fallen over 5% in the past month. 

Geojit Financial Services’ head of research Vinod Nair attributed this decline to relentless selling by foreign institutional investors (FIIs) amid weak corporate earnings and a sharp surge in domestic inflation. 

“This trend is mirrored across all emerging markets, as markets are jittery about future US policy actions, including trade-related implications for the world economy, which is reflected in the strengthening of the US dollar and rising yields,” he said.