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    Paytm shares recover 3.5% to trade above Rs 900-mark; should you buy?

    Paytm shares recover 3.5% to trade above Rs 900-mark; should you buy?

    Paytm shares recover 3.5% to trade above Rs 900-mark; should you buy?
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    By Kanishka Sarkar   IST (Published)

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    Paytm shares rebounded on Friday after a series of losses since the start of 2022. The stock, which struggled to stay at the Rs 900-mark on Thursday, gained 3.4 percent to rise to an intraday high of Rs 923.90 on the BSE.

    The shares of Paytm’s parent company One97 Communications recovered on Friday after a series of losses since the start of 2022. Paytm shares gained 3.4 percent to rise to an intraday high of Rs 923.90 on BSE after the stock struggled to stay at the Rs 900-mark on Thursday.
    The upward movement in Paytm shares comes after the company announced it will declare results for the quarter ending December 31, 2021, on February 4.
    Several analysts have remained unconvinced about the performance of new-age companies’ stocks like Zomato, CarTrade, PB Fintech, and Nykaa, most of which made their debut on Dalal Street in 2021 with sky-high valuations.
    However, most of these stocks fell to their lowest levels, some even below the issue price, given the negative trend in the market and little understanding of such firms’ businesses among investors.
    The trend came alongside a similar movement in the stocks of highly valued tech and platform companies on the Nasdaq index in the US, which had been trading lower in anticipation of huge interest rate hikes.
    Though Nasdaq ended 226.80 points or 1.6 lower on Thursday, the new age stocks have rebounded amid an overall positive sentiment in the Indian market.
    But, will the recovery continue?
    Experts have suggested that the stocks of new-age businesses will remain volatile. Deepak Shenoy, Founder of Capitalmind said first there will be a downside and then later perhaps an upside.
    Market veteran Shankar Sharma earlier told CNBC-TV18 that they have already fallen 20-50 percent and can fall another 50 percent and still not be cheap. In fact, he said he would not be surprised if several of the new age listings are down by 90 percent from their listing prices by 2022 end.
    However, Nirmal Bang Institutional Equities CEO Rahul Arora told CNBC-TV18 that the Paytm stock could give a relief rally after some correction.
    The Paytm stock, which was trading 2.65 percent higher at Rs 917 at the time of writing, has corrected more than 7 percent in the past five days.
    In 2022 (year-to-date), investors have lost over 31 percent of their wealth in One97 shares.
    Check out our in-depth Market Coverage, Business News & get real-time Stock Market Updates on CNBC-TV18. Also, Watch our channels CNBC-TV18, CNBC Awaaz and CNBC Bajar Live on-the-go!
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