New-Age Tech Stocks Lose Almost $4 Bn In M-Cap This Week

SUMMARY

Barring Fino Payments Bank, EaseMyTrip and CarTrade, 29 out of the 32 new-age tech stocks under Inc42’s coverage fell in a range of 0.15% to under 19% this week

In total, the total market cap of the 32 new-age tech stocks ended the week at $70.25 Bn as against $73.86 Bn at the end of last week

In the broader market, Sensex ended the week 0.67% lower at 73,828.91 and Nifty 50 fell 0.69% to close at 22,397.20

After seeing slight recovery in the initial few days of March, the sentiment turned negative in the Indian equities market this week. As a result, most of the new-age tech stocks ended in the red this week and their cumulative market capitalisation slumped nearly $4 Bn.

Barring Fino Payments Bank, EaseMyTrip and CarTrade, 29 out of the 32 new-age tech stocks under Inc42’s coverage fell in a range of 0.15% to under 19% this week. 

Fintech SaaS company Veefin Solutions emerged as the biggest loser this week, with its shares crashing 18.46% to INR 314.70. The BSE SME-listed company’s shares have declined over 40% since January 1. Its market capitalisation has also tanked from over $150 Mn in January to $86.76 Mn at the end of Thursday’s (March 13) trading session. 

DroneAcharya Aerial Innovations, another new-age tech stock listed on the BSE SME platform, emerged as the second biggest loser this week. The dronetech company’s shares ended up falling 13.93% to end at INR 64.28. The stock closed at an all-time low. 

Among the other losers, RateGain, Ola Electric, Tracxn, Yudiz, Delhivery and MobiKwik touched fresh lows this week. Meanwhile, Fino Payments Bank, EaseMytrip and CarTrade gained in a range of 0.29% to just under 4%. Fino Payments Bank was the biggest gainer this week, with its shares ending 3.56% higher at INR 222.60.

In total, the total market cap of the 32 new-age tech stocks ended the week at $70.25 Bn as against $73.86 Bn at the end of last week.

In the broader market, Sensex ended the week 0.67% lower at 73,828.91 and Nifty 50 fell 0.69% to close at 22,397.20. There were only four trading days this week as the stock exchanges were closed on account of Holi on Friday (March 14).

Commenting on Nifty’s performance this week, Hrishikesh Yedve, AVP of technical and derivatives research at Asit C. Mehta Investment Intermediates, said, “Over the past week, the index has been consolidating within the 22,300-23,700 range. Additionally, it is encountering resistance near the bearish gap of 22,668-22,720. As long as the index holds above 22,300, a pullback towards 22,600-22,700 remains possible. However, if Nifty breaches 22,300, the weakness could extend towards the 22,000 level.” 

This comes at a time when US president Donald Trump’s tariff threats have roiled the global markets. Vinod Nair, head of research at Geojit Financial Services, said that the escalating global trade war has weighed heavily on market sentiments worldwide, creating uncertainty and causing indices to trade within a narrow range.

Despite the global uncertainties, domestic factors provided some relief this week.

Experts noted that the Indian economy is showing positive signs of recovery, driven by a moderation in inflation and improvements in economic fundamentals.

“… the moderation in valuations following recent corrections, along with supportive factors such as falling crude oil prices, easing Dollar Index, and expectations of a rebound in domestic earnings in the coming quarters, may limit the volatility and is expected to contribute to stability amid prevailing trade uncertainties,” Nair added. 

Now, let’s take a detailed look at the performance of some of the new-age tech stocks this week.

No End To Ola Electric’s Troubles 

Shares of the electric two-wheeler manufacturer continued their downward slide and slipped to an all-time low at INR 50.31 on Thursday (March 13) before recovering slight to end the week’s trade at INR 50.54. Overall, the stock crashed 10.61% this week and over 33% from its listing price of INR 75.99 on the BSE. 

A recent report by Bloomberg said that over 90% of the EV major’s showrooms are operating without the necessary approvals. However, the company denied the allegations. 

During the week, Ola Electric said that its cost-cutting initiatives have helped it reduce the cash burn by INR 90 Cr per month. As a result, the electric mobility company expects its automotive segment to achieve EBITDA breakeven in the first quarter of the fiscal year 2025-26 (Q1 FY26). 

Meanwhile, the Bhavish Aggarwal-led company informed the exchanges yesterday that Rosmerta Digital Services, its vehicle registration agency, has filed a plea before the Bengaluru bench of the National Company Law Tribunal seeking initiation of insolvency proceedings against its subsidiary Ola Electric Technologies for allegedly defaulting on its payments. 

PB Fintech’s Tumultuous Week

After a tough few days last week, shares of Policybazaar parent PB Fintech continued their downwards movement this week as well. The stock declined 5.03% from last week to end Thursday’s trading session at INR 1,327.80. 

On Wednesday (March 12), PB Fintech’s board approved an investment of INR 696 Cr (around $80 Mn) by the company in its wholly owned subsidiary PB Healthcare Services Pvt Ltd.

This follows PB Fintech group chairman and CEO Yashish Dahiya’s statement last year that the company would make a one-time investment of $100 Mn to acquire a 30% stake in its new healthcare company. PB Fintech incorporated its healthcare arm in January.

Besides the proposed investment by the company, its cofounders Dahiya and Alok Bansal, along with three key managerial personnel, will invest INR 132.75 Cr in the healthcare subsidiary for a combined 6.61% stake.

Last week, Dahiya also settled a case of alleged insider trading with SEBI by paying a settlement amount of INR 9.43 Lakh. 

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