Zomato stock at its highest level since December, 2022
After a dull few weeks, beauty ecommerce platform Nykaa also returned to the green as the stock climbed 3.56% to INR 128.65 on the BSE on Thursday
Fintech major Paytm also attracted investor interest as the stock rose 1.39% to close at INR 671 on the BSE on May 4
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Continuing its bull run, shares of foodtech giant Zomato rose to a five-month high of INR 66.46 during the intraday trade on Thursday (May 4).
Buoyed by increased fund inflow from foreign institutional investors (FII) and positive Q4 numbers of major companies, markets notched up positive numbers while a good chunk of new-age tech stocks also rose alongside.
In the case of Zomato, the foodtech giant’s scrip has been trading at its highest level since December 5 last year, when it closed at INR 65.5. On May 4, the Gurugram-based company closed 3.47% higher at INR 65.63 on the BSE.
Zomato’s stocks have rallied more than 26% in the past 30 days and 37% in the last three months. From a record low of INR 40.55, Zomato has seen a dramatic change in its fortune on the bourses.
While initiating its coverage on Zomato last month, Motilal Oswal Financial Services (MOFSL) gave a ‘BUY’ rating to the foodtech unicorn’s stock with a target price of INR 70. Close on the heels of that, ICICI Securities also maintained a ‘BUY’ rating on the stock, with a DCF-based price target of INR 65.
After a dull few weeks, beauty ecommerce platform Nykaa has also returned in the green, as the stock climbed 3.56% to INR 128.65 on the BSE on Thursday. The beauty ecommerce unicorn also notched an intraday high of INR 129.5 around the time markets were about to close as the stock bounced back strongly.
This offers much-needed relief to Nykaa’s retail investors who have seen the company’s share price plummet to record lows in the past two weeks.
Nykaa fell to a record low of INR 114.30 on April 26 but has since grown more than 12% in the last six trading sessions. On a monthly basis, however, the Nykaa stock is down more than 5% from INR 136.55 on the BSE on April 5.
The beauty ecommerce platform’s troubles have been exacerbated by the recent restructuring of its leadership team, after the exodus of five key executives in March.
The entry of Reliance Retail’s Tira into the beauty ecommerce space also triggered a selloff of the Nykaa stock in the markets.
Just like Zomato and Nykaa, fintech juggernaut Paytm also made slight gains on the bourses as the stock moved up 1.39% to close at INR 671 on the BSE on Thursday. The fintech major has climbed nearly 4% in the past five trading sessions, while it is up nearly 5% in the past month.
Meanwhile, the day continued to be gloomy for other new-age tech companies such as Delhivery, PolicyBazaar, MapmyIndia and Nazara Technologies, which slipped 0.08%, 0.13%, 0.5% and 0.06%, respectively, on the BSE.
The semblance of positivity has largely been attributed to increasing FII inflow and positive financial numbers of new-age tech companies. This has also been reflected in the performances of benchmark indices such as BSE Sensex, which rose 0.91% to 61,749.25 points while NIfty50 grew 0.92% to 18,255.8 on the BSE on Thursday.
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