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Zomato, Nykaa, PolicyBazaar: Recent-Time Tech Stocks Continue To Tumble

Administrator

Synopsis of the Tech Stocks Tumble:

  • Nykaa, an eCommerce company, fell 6.89 percent to INR 1,433 on Monday.
  • PolicyBazaar’s stock has dropped by more than half since its initial public offering last year.
  • Zomato’s stock dropped more than 6% to settle at INR 56.75.

On Monday (May 9), shares of listed new-age technology startups like Zomato, PolicyBazaar, Nykaa, and Paytm fell by 2-7 percent on the NSE, continuing their previous slide.

On Monday, shares of eCommerce company Nykaa fell 6.89 percent to INR 1,433 on the NSE. Last year, the business had a strong IPO, with shares trading at INR 2,018, up 79.37 percent from the IPO issue price of INR 1,125. In November 2021, it climbed to an all-time high of INR 2,437.10. However, the stock has dropped by more than 41% since its all-time high.

A similar story proceeded with shares of PB Fintech, which owns Policy Bazaar and is a prominent new-age software business. Its stock dropped 5.58 percent to INR 582.50 a share. In November of last year, the stock was launched on the NSE at a 17 percent premium, at INR 1,196.10. It has dropped by more than half since then. In the last five trading sessions, it has dropped by more than 12%.

Paytm’s stock dropped 2.11 percent to INR 556 per share. The stock dropped more than 19 percent in the previous month, and it is now selling at more than 70 percent below its November IPO price.

Zomato, the food tech behemoth, has also seen its stock price plummet. Zomato dropped more than 6% to INR 56.75 on Monday, marking a 20% drop in the last five trading days. Since its IPO in July of last year, Zomato has wiped off 66 percent of investors’ money.

Meanwhile, the NSE Nifty concluded the day 109.4 points lower at 16,301.85, while the BSE Sensex ended the day 364.91 points lower at 54,470.67.

The sharp decrease is also attributable to geopolitical concerns caused by the current Russia-Ukraine conflict and the tightening of monetary policies by central banks around the world, particularly the US Federal Reserve.

Meanwhile, foreign portfolio investors (FPIs) have been dumping Indian stocks, withdrawing INR 11,035 crore so far in May. So far in 2022, FPIs have taken out INR 1.38 lakh crore from Indian equities.