The market cap of the 32 new-age tech stocks slumped about $5 Bn this week to $73.06 Bn at the end of February
Barring CarTrade, Go Digit, Zaggle and BlackBuck, shares of all of the new-age tech stocks ended the week in the red, falling in a range of about 20% to 1.38%
In just four trading sessions, benchmark index Sensex fell 2.81% to end at 73,198.10 and Nifty 50 dipped 2.94% to 22,124.70
The Indian equities market saw another disappointing week, with benchmark indices plunging about 3% each due to across-the-board selling. Over 900 companies touched fresh 52-week lows on the BSE in the final week of February.
The bloodbath in the broader equities market extracted a toll of about $5 Bn in terms of market capitalisation on 32 new-age tech stocks under Inc42’s purview from last week.
The market capitalisation of the 32 new-age tech stocks slumped to $73.06 Bn at the end of February from $102.11 Bn market capitalisation commanded by 30 new-age tech stocks at the beginning of December 2024.
Barring CarTrade, Go Digit, Zaggle and BlackBuck, shares of all of the new-age tech stocks ended the week in the red, falling in a range of about 20% to 1.38%.
TBO Tek witnessed the highest selling pressure this week. The traveltech company’s shares plunged to an all-time low of INR 1,182.40 during the intraday trading on Friday (February 28), before recovering a bit to end the week at INR 1,201.10. This still marked a 19.96% decline from last Friday’s close.
Shares of Yatra crashed 9.36% and touched a fresh all-time low of INR 68.13 during the week, while ixigo and EaseMyTrip fell 4.84% and 4.09%, respectively.
MobiKwik, too, continued its downward spiral, and emerged as the second biggest loser. The stock fell 11.13% this week to end at INR 276.55. It touched a fresh all-time low of INR 273.80 on Friday before making a slight recovery. The company’s shares have dipped about 38% from their listing price of INRs 442.25.
Tracxn, Unicommerce, DroneAcharya, Yudiz and Ola Electric also touched new lows this week.
Meanwhile, CarTrade, Go Digit, Zaggle and BlackBuck gained in a range of 0.62% to 2.64% this week. CarTrade emerged as the biggest winner, with its shares rising 2.64% to end the week at INR 1,508.85.
Trump’s Tariff War Takes A Toll On The Indian Market
The Indian markets were closed this week on February 26 on the occasion of Mahashivratri. In just four trading sessions, benchmark index Sensex fell 2.81% to end at 73,198.10 and Nifty 50 dipped 2.94% to 22,124.70.
Amid prolonged negative sentiment, US President Donald Trump’s announcement to impose tariffs on Canada, Mexico and China hurt the indices even further.
On Thursday (February 27), Trump announced that 25% duties on imports from Canada and Mexico to the US will go into effect on March 4. Meanwhile, goods from China to the US will be subject to an additional 10% duty. Earlier in the week, he also promised 25% tariffs on shipments from the European Union.
Consequently, Sensex and Nifty 50 crashed almost 2% each on Friday.
Hrishikesh Yedve, AVP of technical and derivatives research at Asit C. Mehta Investment Intermediates Ltd, said that weak global cues led to heavy selling pressure this week,
“As long as Nifty remains below 22,500, the bearish momentum is likely to persist, with 22,000 acting as immediate support, followed by 21,850 where the 100-Weekly Simple Moving Average (100-WSMA) is placed. Thus, traders are advised to follow the sell on rise strategy,” he added.
Besides the tariff war, experts said that high valuations continued to weigh on small and mid-cap stocks this week. “Meanwhile, declining US bond yields signal a flight to safe-haven assets, while FII flows have shifted toward more affordable markets,” Vinod Nair, head of research at Geojit Financial Services, said.
Foreign institutional investors (FIIs) sold equities worth INR 41,748 Cr in February, taking their total selling in 2025 to INR 1.23 Lakh Cr.
Vipul Bhowar, senior director of listed investments at Waterfield Advisors, attributed the selling spree to elevated valuations of Indian equities, alongside concerns about corporate earnings growth.
He opined that an atmosphere of uncertainty had already been triggered due to weak earning reports for Q3 FY25 and revisions to forward earnings. With downgrades outpacing upgrades, particularly among companies outside the Nifty 50 index, the FIIs turned more bearish on the Indian market.
Meanwhile, the Centre released the GDP growth data on Friday. The real GDP grew by 6.2% in Q3 FY25, with nominal GDP rising by 9.9%. The country’s real GDP growth is expected to be 6.5% in the ongoing financial year.
Geojit’s Nair said that the GDP data met expectations, with a slight upward revision to 6.5% for the fiscal year. However, investors will closely watch key upcoming events, including the US tariff policy, core PCE price index, and jobless claims moving forward.
“In the near term, market conditions are expected to remain weak, with a gradual recovery anticipated as earnings improve from Q1 FY26 and global trade policy uncertainties subside,” he added.
Now, let’s take a deeper look at the performance of some of the new-age tech stocks this week.
Paytm Slumps Over 6%
Shares of the fintech major fell 6.52% to end the week at INR 716.30.
On February 26, the Department for Promotion of Industry and Internal Trade (DPIIT) signed a memorandum of understanding (MoU) with Paytm to boost innovation and accelerate the growth of manufacturing and fintech startups in the country.
Through this partnership, Paytm will provide mentorship, infrastructure support, market access, and funding opportunities to startups, the report said, citing an official statement.
The following day, Paytm said it has partnered with AI search engine Perplexity to provide users with real-time financial assistance on its app. The collaboration is aimed at integrating AI-driven intelligence into mobile payments, Paytm said in an exchange filing.
On Saturday (March 1), Paytm intimated the bourses that it has received a show cause notice from the Directorate of Enforcement over alleged FEMA violations in relation to its investments in Little Internet Pvt Ltd and NearBuy India Pvt Ltd.
“Paytm upholds principles of transparency, governance, and compliance in all its business practices. This matter is being addressed with a focus on resolving it in accordance with applicable laws. There is no impact of this matter on Paytm’s services to its consumers and merchants, and all services are fully operational and secure, as always,” the company said.
Ola Electric Touches New Lows
The shares of the Bhavish Aggarwal-led company touched a fresh low of INR 55.64 this week, before recovering a bit to end at INR 56.85. The stock declined 6.59% this week.
The company’s market cap also plunged to $2.87 Bn as against its IPO valuation at $4 Bn.
On Friday, Ola Electric claimed that it sold more than 25,000 units in February and had a market share of over 28% in the electric two-wheeler market.
“Owing to our wide scooter portfolio across mass and premium segments, and our network of 4,000 stores across India, we are now witnessing a strong uptick in demand beyond urban cities from Tier 3 & 4 towns. With our Roadster X deliveries scheduled next month, we are confident of further accelerating the EV adoption across the 2W category in India,” a company spokesperson said.
As per Vahan data, Ola Electric lost its top spot in the market to legacy automotive player Bajaj Auto yet again in February. However, it is pertinent to note that the company said earlier that it was expecting its EV registrations for the month of February to be temporarily impacted as it was renegotiating terms of agreements with its agencies Rosmerta Digital Services Pvt Ltd and Shimnit India Pvt Ltd.
Meanwhile, as part of its profitability push, Ola Electric has shut all its regional warehouses. The company plans to leverage its 4,000 retail stores across the country to maintain vehicle inventory, spare parts, accessories, and last-mile deliveries. The decision is part of a cost-cutting exercise aimed at expediting its path to profitability.