Shares of listed start-ups and new-age technology companies have been under tremendous selling pressure due to higher ratings and a negative underline, which has sent jitter feelings.
Zomato NSE -19.62% fell 19 percent to Rs 91.70 in early trading on Monday. The counter had lost about 30 percent of its value last week. The food delivery platform trades below its listing price and the company’s market capitalization has dropped below Rs 80,000 crore.
Shares of another listed start-up, Nykaa NSE -13.13%, fell 9 percent to Rs 1817.7. The scrip is 30 percent dive from its highest price scale in November 2021.
PB Fintech, the parent company of PolicyBazaar, dropped about 5 percent to Rs 825.70. The parent company of PolicyBazaar and Paisabazaar has lost 45 percent of value from peak levels.
Paytm, the worst performer lost 4 percent to Rs 925 during early trading. The counter has lost about 60 percent of value compared to its issue price of Rs 2,150.
All four stocks hit their respective 52-week lows during early trading on Monday. Market analysts said the correction in global equities put these equities at risk.
The trend in global markets has clearly become bearish. The sale of tech shares was brutal last week, said UK Vijayakumar, Chief Investment Strategist at Geojit Financial Services.
“An important feature of tech sales is that most of the sales happen in non-profit tech stocks. This trend is also affecting stocks like Zomato and Paytm in India,” he added.
Recently reported stocks, RateGain Travel Technologies, Latent View Analytics, Sona Comstar, MapMyIndia, Sapphire Foods India, Rolex Rings, GR Infraprojects, and Metro Brands each dropped 5-9 percent.
Harsh Patidar, the BFSI Analyst at CapitalVia Global Research, shared similar views, saying that world markets are witnessing a sell-off, especially in technology stocks listed by NASDAQ, and that hurt the sentiment for Indian start-up companies.
“Higher inflation, increasing bond yields hurt companies of new age,” he added, expecting more pressure on these companies. He suggested investors collect quality stocks as another 10-12 percent correction is witnessed by current levels.