New-age tech stocks Zomato and Paytm have been under pressure, hitting their respective lows since the listing. Zomato slashed over 18% in early Monday deals 92 on the BSE, down over 25% in the last five trading sessions. On the other hand, was trading about 4% lower on Paytm 924 each.
Food delivery platform Zomato was listed in July 2021 and is over 30% above its IPO issue price 76. Meanwhile, Paytm is down over 57% from its issue price 2,150.
“The trend in global stock markets has become clearly bearish. Last week, the S&P 500 and Nasdaq closed down 8% and 15% from their all-time highs. The sell-off in tech stocks has been brutal over the past week. European stocks were also bearish. An important characteristic of technical selling is that the majority of selling is taking place in non-profitable tech stocks. This trend is also affecting stocks like Zomato and Paytm in India, said VK Vijayakumar, Chief Investment Strategist, Geojit Financial Services.
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