The Economic Times daily newspaper is available online now.

    Zomato, Paytm, Nykaa shares drop up to 14% amid brutal tech sell-off

    Synopsis

    Zomato dropped 14 per cent to Rs 97.45 in early trade on Monday. The counter has lost about 30 per cent of its value in the last week. The food delivery platform is trading below its listing price and the company's market cap has slipped below Rs 80,000 crore.

    Zomato
    All the four stocks hit their respective 52-week lows during the early trade on Monday. Market analysts said that the correction in the global stocks left these stocks in jeopardy.
    New Delhi: Shares of listed start-ups and new-age technology companies have been under tremendous selling pressure due to higher valuations and a negative bottom line, which has jittered sentiments.

    Zomato dropped 19 per cent to Rs 91.70 in early trade on Monday. The counter had lost about 30 per cent of its value last week. The food delivery platform is trading below its listing price and the company's market cap has slipped below Rs 80,000 crore.

    Elevate Your Tech Prowess with High-Value Skill Courses

    Offering CollegeCourseWebsite
    Indian School of BusinessISB Professional Certificate in Product ManagementVisit
    Indian School of BusinessISB Product ManagementVisit
    IIM LucknowIIML Executive Programme in FinTech, Banking & Applied Risk ManagementVisit
    Shares of another listed start-up, Nykaa, dropped 9 per cent to Rs 1817.7. The scrip has dived 30 per cent from its highest price scaled in November 2021.

    PB Fintech, the parent company of PolicyBazaar, slumped about 5 per cent to Rs 825.70. The parent company of PolicyBazaar and Paisabazaar has lost 45 per cent of value from peak levels.

    Paytm, the worst performer, lost 4 per cent to Rs 925 during early trade. The counter has lost about 60 per cent of value compared to its issue price of Rs 2,150.
    « Back to recommendation stories
    I don't want to see these stories because
    SUBMIT

    All the four stocks hit their respective 52-week lows during early trade on Monday. Market analysts said that the correction in global stocks left these stocks in jeopardy.

    The trend in global markets has turned distinctly bearish. The sell-off in tech stocks was brutal last week, said VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services.

    "An important feature of the tech sell-off is that bulk of the selling is happening in non-profitable tech stocks. This trend is impacting stocks like Zomato and Paytm in India, too," he added.

    Among other recently listed stocks, RateGain Travel Technologies, Latent View Analytics, Sona Comstar, MapMyIndia, Sapphire Foods India, Rolex Rings, GR Infraprojects and Metro Brands plunged 5-9 per cent each.

    Echoing similar views, Harsh Patidar, BFSI Analyst at CapitalVia Global Research, said global markets are witnessing a sell-off, especially in technology stocks indicated by NASDAQ, and that is hurting the sentiments for Indian start-up companies.

    "Higher Inflation, rising bond yields hurt new-age companies," he added, expecting more pressure on these companies. He suggested investors to accumulate quality stocks if another 10-12 per cent correction is witnessed from current levels.
    The Economic Times

    Stories you might be interested in