Bloodbath In New-Age Tech Stocks As Broader Market Slumps; IndiaMART The Only Gainer This Week

Eighteen of the 19 new-age tech stocks fell in a range of 0.03% to a massive 33% this week, with Yudiz emerging as the biggest loser
IndiaMART InterMESH was the only gainer this week, rising 0.7% on the BSE
In the broader market, Nifty50 declined 2.09% to close the week at 22,023.35, while Sensex fell 1.99% to end at 72,643.43 on Friday

Continuing the last week’s slump, Indian new-age tech stocks nosedived this week amid volatility and a major correction in the broader domestic equity market.

Eighteen of the 19 new-age tech stocks fell in a range of 0.03% to a massive 33% this week. Amid the bloodshed, IndiaMART InterMESH emerged as the only gainer this week by rising 0.7% on the BSE.

Yudiz Solutions turned out to be the biggest loser by falling 32.8%, followed by Fino Payments Bank (down 11.4%) and DroneAcharya Aerial Innovations (down 10.6%).

Besides, Zaggle and CarTrade Technologies slumped over 9% each, Tracxn Technologies and Yatra fell over 8% each, while ideaForge, Nykaa, and Delhivery declined more than 4% each this week.

Meanwhile, shares of Paytm continued to remain under pressure amid multiple new developments and fell 7.5% on the BSE.

In the broader market, the benchmark indices witnessed a volatile week, largely affected by weak global cues and concerns about rich valuations of many stocks. Nifty50 declined 2.09% to close the week at 22,023.35, while Sensex fell 1.99% to end at 72,643.43 on Friday (March 15).

Vinod Nair, head of research at Geojit Financial Services, said that unfavourable risk-reward balance of mid and small-cap stocks, fuelled by prolonged premium valuations, aggravated the downfall in the market.

The US Federal Reserve, Bank of England, and Bank of Japan are set to unveil their interest rate decisions next week.

Nair said currently there is uncertainty over Fed rate cuts due to an increase in the US unemployment rate and higher-than-expected US inflation.

Overall, analysts expect the volatility to continue in the Indian equity markets in the near term.

Now, let’s deep dive into the performance of some of the new-age tech stocks this week.

The total market capitalisation of the 19 new-age tech stocks under Inc42’s coverage stood at $43.74 Bn at the end of this week as against $44.64 Bn last week and $55.49 Bn the week before.

Online Coverage: Inc42