Three points you will get to know in this article:
- Paytm emerged as the biggest winner, gaining 5.8% on the BSE, driven by improved sentiment and strong Q2 FY24 earnings.
- Zomato saw a slight increase in share price after partnering with Indian Railway Catering and Tourism Corporation (IRCTC) for meal delivery, but there are bearish signs in its stock movement.
- Indian new-age tech stocks slumped this week due to mixed earnings reports and geopolitical tensions.
This week witnessed a downturn in the performance of Indian new-age technology stocks, mirroring the broader market’s decline. The setback was attributed to a combination of mixed Q2 earnings reports from various companies and escalating geopolitical tensions.
Within the realm of Inc42’s coverage, 11 out of the 18 new-age tech stocks experienced a decline ranging from 1% to 9%. The most significant dip was observed in Zaggle, a recently listed entity, marking an 8.7% fall on the BSE. Among the noteworthy underperformers were Tracxn, experiencing a 7.8% decrease, Yatra with a 7.5% decline, EaseMyTrip, which fell by 2.8%, and Nykaa, witnessing a 2.1% drop.
Contrastingly, Paytm defied the market pressure, sustaining its bullish momentum. The company’s resilience was buoyed by an optimistic market sentiment and the anticipation of robust Q2 FY24 earnings. Notably, Paytm released its earnings report after market hours on Friday (October 20), contributing to its continued positive trajectory. This week, Paytm clinched the top spot as the standout performer, registering a remarkable 5.8% surge on the BSE. Following closely behind was RateGain, securing a substantial gain of 5.1%.
Meanwhile, Yudiz, Zomato, DroneAcharya, ideaForge, and Delhivery all experienced positive momentum, each making strides in the range of 0.5% to over 4% throughout the week.
Shifting focus to the broader market scenario, both benchmark indices, Nifty 50 and Sensex, encountered a setback, witnessing a decline of 1.06% to 19,542.65 and 1.34% to 65,397.62, respectively, over the course of three consecutive sessions. Nair anticipates that investors will maintain a vigilant approach in the short run, expressing reservations about the lasting effects of geopolitical tensions in the Middle East.
Looking ahead to the upcoming week, those involved in the market will closely observe the US GDP data, seeking valuable perspectives on the Federal Reserve’s path concerning interest rates. Moreover, with the earnings season picking up pace, the sentiments of investors will be influenced by the insights shared by company executives and the hands-on investment strategies they employ, he further emphasized.
Paytm’s Strong Q2 Show
Throughout this week, Paytm witnessed a robust uptrend, primarily fueled by optimistic market expectations surrounding the fintech giant’s anticipated enhanced performance in the second quarter.
In each of the five trading sessions, Paytm shares exhibited noteworthy gains, marking a 5.8% ascent that culminated in Friday’s closing at INR 987.35 on the BSE.
Following the week’s market closure, the company unveiled its financial statement, revealing a noteworthy 49% year-on-year (YoY) reduction in consolidated net loss to INR 291.7 Cr for the September quarter.
On a positive note, Paytm experienced a substantial 31% YoY surge in operating revenue, reaching INR 2,518.6 Cr.
Moreover, in a sequential analysis, Paytm demonstrated a commendable enhancement in both its top and bottom lines.
Paytm shares are currently trading 50% higher than they did six months ago, helped by an improvement in market optimism.
EaseMyTrip Remains Under Pressure
In 2022, amidst a widespread downturn that affected most cutting-edge tech stocks like Zomato, Paytm, Nykaa, and PB Fintech, EaseMyTrip emerged as a beacon of resilience. However, this year has witnessed a notable shift.
Despite the upward trajectory of many contemporary tech stocks, EaseMyTrip’s shares have taken a dip of nearly 24% year to date. Any fleeting surges in the stock’s value have swiftly been followed by substantial declines throughout the year.
In the current week, the traveltech platform’s shares experienced a slump of approximately 2.8%. Although the stock saw an initial rise at the beginning of the week, it succumbed to a downward trend over the subsequent four sessions, concluding Friday’s trading at INR 40.13 on the BSE.
Adding to the dynamics, the company revealed some significant developments in the past week. Specifically, last Friday marked the launch of a distinctive platform catering to spiritual tourism in India, aptly named EasyDarshan – a venture that seeks to provide a 100% unique and user-friendly experience.
This week brought exciting news of exclusive offers from EaseMyTrip. The travel platform revealed its collaboration with the Imperial Society of Innovative Engineers (ISIE) for Formula Imperial 2023 and Indian Karting Race 2023, promising travel discounts for participants of these thrilling sports events. In addition to these partnerships, EaseMyTrip unveiled the ‘Dussehra Travel Sale.’ Travel enthusiasts can now enjoy savings of up to 4% on flight bookings, as well as discounts of up to 53% on hotel stays and up to 12% on cab reservations.
Adding to the buzz, EaseMyTrip proudly announced its continued association as the official partner of the World Tennis League for the second consecutive year. These partnerships not only reflect our commitment to sports but also underline our dedication to providing unbeatable travel experiences for our users.
Zomato Partners With IRCTC
Zomato, a key player in the food technology sector, experienced a commendable 2% surge in its shares this week, navigating through market fluctuations to settle at INR 113.4 on the Bombay Stock Exchange by the end of Friday’s trading session.
Despite the stock’s consistent upward trajectory in recent months, let’s delve into the factors that potentially influenced its share performance this week.
Indian new-age tech stocks experienced a decline this week due to mixed earnings reports and geopolitical tensions. However, Paytm emerged as the standout performer, benefiting from improved sentiment and strong Q2 FY24 earnings. On the other hand, Zomato saw a modest increase in its share price amid market volatility. Overall, the market was influenced by factors such as weak earnings season, disappointment from the IT sector, and geopolitical concerns. Investors are advised to remain cautious in the near term. The performance of tech stocks will continue to be shaped by factors like management commentaries and global market challenges.
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