Stock market meltdown: Zomato, Nykaa, Paytm, other new-age tech stocks crash up to 17%
- Paytm share price was at 5% lower circuit, Zomato shares cracked 16%, Honasa Consumer shares tanked 17%, while Delhivery and Nykaa stock price plummeted over 8% each.
Zomato, Paytm, Nykaa, Delhivery, among other new-age tech stocks plunged up to 10% on Tuesday amid overall stock market meltdown. Dalal Street witnessed a bloodbath as the Sensex and Nifty 50 crashed 8% each after the trends in election results 2024 indicates a slim majority for the ruling NDA, falling short of exit poll predictions.
Paytm share price was at 5% lower circuit, Zomato shares cracked 16%, Honasa Consumer shares tanked 17%, while Delhivery and Nykaa stock price plummeted over 8% each and PB Fintech shares dropped over 6%.
The fall in new-age tech stocks was in-line with the broader market selloff. The overall market capitalisation (mcap) of BSE-listed companies plummeted by nearly ₹40 lakh crore to ₹388 lakh crore.
Indian markets witnessed a sharp selloff on Tuesday, June 4, erasing all of Monday's gains as early trends indicated that the Lok Sabha election results could be tighter than exit polls had predicted.
These unexpected trends in election results 2024 caused panic among investors, with both the frontline indices, Sensex and Nifty 50, witnessing their biggest single-day fall in more than two years. Sensex and Nifty 50 dipped 8% each.
All the sectoral indices were in deep red with the PSU stocks taking a huge beating.
Experts believe that the Indian stock market had factored in a significant majority for the NDA, but the present trends in results do not align with market expectations, spooking investors.
“The index has fallen by about 5% due to a weaker trend for the NDA in the poll counting. The market, which had begun to price in a landslide victory for the NDA, is witnessing a significant correction due to margin calls, as retail investors were carrying heavily leveraged positions. Recovery looks possible once the trend moves in favor of the BJP winning the election comfortably,” said Rupak De, Senior Technical Analyst, LKP Securities.
According to him, support for Nifty 50 seems to be very fragile. Immediate support is visible at the psychological level of 22,000, below which the index might fall further towards 21,400-21,500.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
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