New-Age Tech Stocks Slump Amid Selling Pressure In Broader Market; CarTrade Biggest Winner

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From Zomato to EaseMyTrip, and RateGain to DroneAcharya, shares of 10 out of 14 tech startups under Inc42’s coverage fell in the range of 0.6% to 11% this week

EaseMyTrip emerged as the biggest loser this week, while shares of CarTrade jumped over 5% on positive Q3 FY23 numbers

Among the benchmark indices, Nifty50 plunged 2.3% to 17,604.35 this week, while Sensex fell 2.1% to 59,330.9

Amid a downturn in the overall Indian equities market ahead of the Union Budget next week, new-age tech stocks slumped significantly this week. 

From Zomato to EaseMyTrip, and RateGain to DroneAcharya, shares of 10 out of 14 tech startups under Inc42’s coverage fell in the range of 0.6% to 11% on the BSE this week, with traveltech major EaseMyTrip emerging as the biggest loser.

Despite several analysts reiterating their optimistic view on Paytm and the fintech giant getting relief from paying a whopping INR 1,081 Cr Goods and Services Tax (GST) earlier this week, its shares continued their southbound journey. Paytm shares fell 6.7% this week, ending Friday’s session at INR 513.55.

Meanwhile, a 31% rise in gaming startup Nazara Technologies’ consolidated net profit in December quarter of FY23 failed to give a positive momentum to the stock. Its shares rose ahead of the declaration of quarterly results, but slumped in two straight sessions after that. Shares of Nazara Technologies ended Friday’s session at INR 592.6, down 2.2% from Thursday’s close. However, the stock ended the week marginally higher.

The week had only four trading sessions as the stock exchanges were closed on January 26 on the occasion of the Republic Day.

CarTrade Technologies emerged as the biggest winner, gaining 5.2% in the week in which it reported upbeat performance in Q3 FY23.

Delhivery and MapmyIndia also ended in the green zone this week despite their peers crumbling due to the negative market sentiment.

Among the benchmark indices, Nifty50 plunged 2.3% to 17,604.35, while Sensex fell 2.1% to 59,330.9. 

“Markets went into a tailspin on broad-based selling pressure as recessionary fears in the west and nervousness ahead of the US Federal Open Market Committee (FOMC) meeting on interest rate decision pummeled stocks. Investors cashed out of banking, power, realty, and oil & gas stocks ahead of the Budget and pulled down key indices below the psychological levels,” said Amol Athawale, deputy vice president, technical research, at Kotak Securities.

Now, let’s dig deeper to analyse the performance of some of the listed tech stocks from the Indian startup ecosystem.

new-age tech stock performance

The 14 new-age tech stocks under our coverage ended the week with a total market capitalisation of $23.45 Bn as against $24.62 Bn last week.

tech stock market cap comparison

EaseMyTrip Biggest Loser

Shares of EaseMyTrip slumped in all four sessions, falling almost 11% this week. The stock fell steeply in the last two sessions after the company announced the acquisition of a 55% stake in hotel booking marketplace cheQin’s parent company Glegoo Innovations Private Limited on Tuesday.

A day later, the startup revealed that it acquired the shares for INR 3 Cr. 

Shares of EaseMyTrip ended Friday’s session at INR 49.1, down almost 4% compared to Thursday’s close.

The traveltech startup has historically been one of the best-performing new-age tech stocks. However, its shares are also facing significant volatility currently given the overall negative market sentiment.

Kotak Securities’ Athawale believes that EaseMyTrip shares currently are giving no signs either on the positive or the negative side as the stock has been range-bound in the last few weeks. “It is better to wait for a while. I think traders are waiting for the breakout. The current texture is non-directional,” he said.

A fresh uptrend is possible only after the stock closes above INR 56-INR 57 level, he added.

EaseMyTrip Biggest Loser

Zomato Shares At Almost 6-Month Low 

Shares of foodtech startup Zomato fell to their lowest level in almost six months as the stock slumped 8.8% this week, ending Friday’s session at INR 46.95.

Shares of Zomato last traded at this level around July-end last year. The stock had taken a significant hit that time following its lock-in expiry and the acquisition of Blinkit.

In The News For:

  • Zomato has relaunched its loyalty programme Zomato Gold, months after discontinuing its earlier loyalty programme Zomato Pro Plus. The announcement came ahead of its Q3 FY23 results. Investors had earlier pressed the company for a customer loyalty programme given that its competitor Swiggy had such a programme .
  • The food delivery platform has decided to rebrand its 10-minute food delivery programme and is working on a new menu

In a recent research report, brokerage JM Financial forecasted that Zomato would see only about 1% quarter-on-quarter growth in food delivery gross order value (GOV) in Q3 due to the adverse impact of inflationary pressures on discretionary spending, increase in dine-in consumption, and the discontinuation of Zomato Pro Plus loyalty programme.

Kotak Securities’ Athawale said that the stock is still looking negative on the technical charts, and is likely to consolidate between INR 46-INR 52.

“We can expect a renge-bound activity in the near future. A fresh pullback rally is possible only if the stock succeeds in trading above INR 50-INR 51. Above that, INR 54 and INR 55 are the immediate resistance levels,” said Athawale.

On the downside, the stock’s immediate support is at INR 43-INR 42, he added.

Zomato At Almost 6-Month Low 

CarTrade Biggest Winner Following Upbeat Q3 Results

Shares of CarTrade Technologies jumped 5.2% this week, gaining in all four sessions. It ended Friday’s session at INR 482.6, up by about 0.5% from Thursday’s close, despite major selling pressure in the overall stock market.

The startup’s shares started their upward movement ahead of the announcement of its Q3 FY23 results and continued to gain after the company reported a profitable quarter. CarTrade reported a consolidated profit after tax (PAT) of INR 14.04 Cr in Q3 as against a loss of INR 18.48 Cr in the corresponding quarter last year.

Sequentially, its net profit grew 151.6% from INR 5.58 Cr in Q2 FY23.

Like most of its other tech stock peers, CarTrade also witnessed a disastrous 2022. Last year, its shares fell around 45%. The stock is currently trading almost 70% lower from its listing price of INR 1,600 on the BSE.

Its immediate support level is at INR 450-INR 460, said Athawale. “If the stock succeeds to trade above the same, then it could move up to INR 520-INR 530 in the near future. The short-term texture is positive but from a medium-term point of view, the stock is still facing resistance at higher levels.”

CarTrade Biggest Winner Following Upbeat Q3 Results

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