Another volatile week for new-age tech stocks as Nykaa and Delhivery continue to decline

• ByStartupStory     |    October 31, 2022

Despite the general stock market showing strong patterns this week, the new-generation Indian tech stocks remained under pressure. The new-age IT stocks that were just listed were hardest hit, including Tracxn Technologies, CarTrade Technologies, Nykaa, and Delhivery, whose lock-in period for per-IPO investors ends next month.

Nykaa and Delhivery stocks on the BSE ended the week 13% and 7.8% lower, respectively, after declining for three straight sessions. Since last week, both stocks have been subject to intense selling pressure and have reached new lows. On the BSE on Friday, Delhivery reached INR 350.05. Nykaa reached its record low of INR 975.5.In actuality, the equities were the Nifty 500 index’s two largest losers this month.

PB Fintech, the parent company of Policybazaar, was also one of the top 10 losers on the Nifty 500 this month. Over the past two weeks, the insurtech startup, whose share lock-in is also expiring in November, experienced extremely high volatility. Shares of Policybazaar recovered some of their momentum after last week’s record-low price, closing Friday’s session more than 3% higher at INR 393.6 on the BSE. The shares increased by roughly 4% on a weekly basis.

Tracxn, on the other hand, has struggled ever since its listing as a result of the disapproval of new-age IT stocks. Tracxn shares had a staggering 16.6% decline this week following a lukewarm market debut last week.The shares closed Friday’s trading session at INR 76.1, or around 5% less than its INR 80 IPO issue price.

On the day of Diwali on Monday this week, there was a one-hour special Muhurat trading session. Most new-age tech equities finished the special trading day in the black, reflecting a bullish feeling in the general stock market.

In spite of the unfavourable global mood over the week, the Indian stock market was optimistic. The benchmark indices NSE Nifty50 and BSE Sensex increased 1.2% and 1.1% this week, closing Friday’s session at 17,786.8 and 59,959.85, respectively. On October 26, the Indian stock exchanges were closed in observance of Diwali Balipratipada.

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