Eighteen out of the 30 new-age tech stocks under Inc42’s coverage fell in a range 0.05% to over 10% between December 16 and 20.
In the broader market, benchmark indices Sensex fell 4.98% to end the week at 78,041.59 and Nifty 50 slumped 4.76% to 23,587.50.
Meanwhile, 12 stocks, including BlackBuck, Swiggy, Cartrade and TAC Infosec, ended the week with gains in a range 0.04% to just a bit under 19%.
The sentiment in the global equities market was affected this week after the US Fed, while announcing a 25 basis points rate cut, hinted at a slower-than-expected pace of interest rate cuts in 2025. Indian markets, too, felt an impact of the bearish investor sentiment.
In line with the broader market, eighteen out of the 30 new-age tech stocks under Inc42’s coverage ended the week in the red. They fell in a range of 0.05% to over 10% from the past week.
Logistics company Delhivery was the biggest loser of the week, with its shares falling 10.52% from previous week to end at INR 349.40. The dip came despite Delhivery receiving a positive rating from Equirus on Tuesday. The brokerage initiated coverage on Delhivery with a “long” recommendation and a price target of INR 459.
Recently listed Unicommerce, which was among the losers this week, touched a new all-time low of INR 164.90 on Friday. The stock made a slight recovery from there but ended the week 7.68% lower at INR 165.40.
Other losers of the week included Paytm, Zomato, EaseMyTrip, Zaggle and MapmyIndia.
Meanwhile, 12 stocks ended the week with gains in a range 0.04% to just a bit under 19%. Logistics company BlackBuck emerged as the biggest gainer. Continuing its bull run from last week, shares of BlackBuck ended the week 18.96% higher from the past week at INR 503.60. The stock touched an all-time high of INR 517.05 during the intraday trading on Friday.
NSE SME-listed TAC Infosec shares closed at an all-time high of INR 1,180.40, up 11.20% from the past week.
Shares of CarTrade also continued their rally, touching a fresh 52-week high of INR 1,647.65 on Friday. With this, the company’s share price crossed its IPO price of INR 1,600. Swiggy and Zaggle also touched an all-time high of INR 613.35 on Tuesday this week.
Other gainers of the week included DroneAcharya, FirstCry, ixigo, Go Digit and PB Fintech.
In the broader market, benchmark indices Sensex fell 4.98% to end the week at 78,041.59 and Nifty 50 slumped 4.76% to 23,587.50.
Following the US Fed’s hawkish commentary, foreign institutional investors became net sellers this week. They sold equity worth INR 15,828 Cr this week.
“FIIs will turn buyers when we have news of GDP growth and earnings growth rebound. Q3 data can be mildly positive. FII selling has depressed the prices of segments of largecaps like banking where the valuations are attractive now. Investors can utilize this market downturn to buy quality largecaps. Pharma, IT and digital platform companies are likely to buck the downtrend,” VK Vijayakumar, chief investment strategist at Geojit Financial Services, said.
Despite the fall this week, the benchmark indices have gained about 10% in 2024 so far. Bajaj Broking expects the bull run to continue in the coming year. “All findings confirm that the bulls will dominate in CY25, with the Nifty expected to deliver a 19% return and reach a potential target of 28,700 over the next 12 months,” the brokerage said in its outlook report for 2025.
Amid the negative sentiment, fintech major MobiKwik made a stellar public market debut this week. Further adding to the list of new-age tech companies going for IPOs, non-banking finance company (NBFC) Aye Finance filed its DRHP for INR 1,450 Cr IPO this week. Its public offer will comprise a fresh issue of equity shares worth INR 885 Cr and an offer for sale (OFS) of up to INR 565 Cr.
Meanwhile, edtech unicorn PhysicsWallah set the ball rolling for its much anticipated IPO by turning into a public company this week.
Now, let’s take a deeper look at the performance of some of the new-age tech companies this week.
The total market cap of the 31 new-age tech companies under Inc42’s coverage stood at $101.42 Bn at the end of the week as against $100.25 Bn at the end of the previous week. MobiKwik became the latest addition to the list this week.
Stellar Listing For MobiKwik
MobiKwik saw a bumper list on Wednesday, with its shares making their debut at a 58.5% premium to the issue price at 442.25 on the BSE. On the NSE, the stock was listed at INR 440 apiece.
Eventually, MobiKwik closed its first trading session at INR 530.30, up 90.07% from the IPO priceThe next day, shares of MobiKwik touched a high of INR 605 during the intraday trading.
However, the stock saw profit booking on Friday and ended its first week on the bourses at INR 488.40, up 10.43% from the listing price. MobiKwik’s market cap also zoomed to $446.63 Mn as against its IPO valuation of $255 Mn.
Dolat Capital became the first brokerage to initiate coverage on MobiKwik, giving a ‘BUY’ rating and a price target (PT) of INR 500.
“Given favorable trends in India’s digital payments and financial services coupled with consistently improving operating performance, we expect Mobikwik to continue delivering robust Revenue/EBITDA/PAT CAGR of 45%/61%/64% over FY24-FY27E,” Dolat Capital said.
Swiggy Gains On Positive View Of Brokerages
Shares of recently listed foodtech major Swiggy gained 12.21% this week and ended at INR 597.50. The company’s shares have surged 45.02% from its listing price of INR 412. Meanwhile, its market cap has also increased to $15.74 Bn, up about 40% from its IPO valuation of $11.30 Bn.
Two brokerages initiated their coverage on Swiggy this week.
On Monday, Axis Capital gave Swiggy a ‘Buy’ rating and a target price of INR 640 per share.
Later in the week, JP Morgan initiated its coverage on the foodtech major with an “overweight” rating, calling it the “dark horse of India local services.” It has a price target of INR 730 for Swiggy.
Zaggle Shares Dip After Initiation Of QIP
On an extended bull run, fintech SaaS company Zaggle decided to undertake its first fundraise as a listed company this week. The company opened its qualified institutional placement (QIP) offer on Wednesday through which it is looking to raise a fresh capital of INR 950 Cr.
Zaggle decided on a floor price of INR 550.73 per equity share for its QIP, marking a 1.9% discount from the stock’s last closing price on Wednesday.
Pertinent to mention that Zaggle touched a fresh all time high of INR 597 a day prior on December 17.
However, investors turned bearish on Zaggle after it opened its QIP. The company’s shares ended the week at INR 530.15, down 5.47% from the past week. Despite the downward movement last week, Zaggle’s shares are currently trading 227.25% higher than its listing price of INR 164.