- Dalal Street Corner: Market snaps 2-day winning streak amid profit booking; what should investors do on Thursday?
- EXCLUSIVE: Government may increase GST on online gaming, casinos and horse racing to 28%
- Patanjali Ayurved to launch its IPO, Swami Ramdev tells Anil Singhvi; gives reason behind Ruchi Soya's name change
- Finance Ministry to clarify doubts on applicability of TDS on perks received in business, profession
- Twitter puts ''correct views'' in front of people: Undercover recording reveals
Zomato, Paytm, Car Trade, PB Fintech and Nykaa shares hit 52-week low; correct up to 20% - Here is why
The decline in IT shares have triggered massive fall in share price of new-edge companies.
The decline in IT shares have triggered massive fall in share price of new-edge companies. Shares such as Zomato, Paytm, Car Trade, Fino Payments Bank and Nykaa have corrected up to 20% in Monday's intraday trade on the BSE. These shares have also declined up to nearly 55 per cent from their respective 52-week highs. Zomato Shares have alone corrected 40% in the last five trading sessions. Shares of almost of these new companies traded on new 52-week low. It is expected that these companies can turn out to be reverse compounders amid brutal sell off.
Shares of Paytm slipped over 5 per cent to new 52-week low of Rs 906.55 on the BSE. At 11 am, shares of Paytm were trading at Rs 910.95, down Rs 48.95 or 5.10%.
From 52-week high of Rs 1961 per share, the stocks of Paytm have corrected more than 50 per cent. Similarly, Car Trade shares too dipped over 50 per cent from its high of Rs 1610 per share. Similarly, PB Fintech shares declined nearly 45% from the high of Rs 1470 per share. Zomato tanked 40%, Fino Payments bank around 35% and Nykaa about 30% from their respective highs of RS 169.10 per share, Rs 583 apiece and Rs 2574 each equity share respectively.
See Zee Business Live TV Streaming Below:
Car Trade shares nearly 5 per cent to hit 52-week low of Rs 774.45 per share on the BSE. Similraly, Nykaa traded on new 52-week low of Rs 1740.05, PB fintech touched Rs 787.10, a new low on Monday too.
Shares of Zomato continued their downwards slide as the shares of the food aggregator decline nearly 20 per cent to hit fresh 52-week low of Rs 91.70 per share in Monday's intraday trade on the BSE.
Expert is of the view that fall in IT shares is also impacting shares of new-edge companies such as Zomato and Paytm.
"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," said V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services.
He said it is important to understand the fact that Indian IT stocks with high profits and good earnings visibility are in a totally different league. "Results of RIL and ICICI Bank are very good, reinforcing the current trend of rising profitability of large Indian corporates," he added.
Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.