New-Age Tech Stocks’ M-Cap Slumps $6 Bn Amid Bloodbath In Broader Market

Shares of Indian new-age tech stocks plunged on Monday (January 13) in line with the bloodbath in the broader market due to concerns about fewer rate cuts by the US Fed and high valuations of Indian stocks.

Twenty nine out of the 31 new-age tech stocks under Inc42’s coverage fell in a range of 8.9% to 0.02% on Monday. The combined market capitalisation of the 31 stocks stood at $82.15 Bn at the end of the session today, down over $6 Bn from $88.38 Bn on Friday.

PB Fintech was the biggest loser, with its shares dropping 8.9% to close at INR 1,691. Its market cap declined to $8.95 Bn from $9.89 Bn on Friday. The dip followed a downgrade by Morgan Stanley. The brokerage firm assigned an ‘underweight’ rating to PB Fintech, citing lower-than-expected profit emergence and high valuation. 

CarTrade was the second biggest loser, with its shares tumbling 8.63% to INR 1,418.05. Nazara Technologies slumped 7.11% to INR 890.4 on the BSE.

Fintech giant Paytm’s shares fell 6.79%, while Zomato continued its losing streak for the seventh straight session. The shares of the Deepinder Goyal-led foodtech major shed 6.52% to end at INR 227.15. 

With this, shares of Zomato have slumped nearly 22% over the past few weeks after touching a 52-week high of INR 304.5 in December 2024.

Its rival Swiggy’s shares also fell 5.73%, while Nykaa declined 2.89% to INR 164.6. Notably, earlier this month, brokerage firm InCred Equities initiated coverage on Nykaa with ‘reduce’ rating and a target price of INR 103. 

Amid all these, TAC Infosec and Yatra were the only two new-age tech stocks to end the day in the green. While shares of the cybersecurity company rose 2% to close at INR 1,426.80, Yatra jumped 1.93% to end at INR 108.4.

In the broader market, Sensex slumped 1.36% to 76,330.01 and Nifty 50 declined 1.47% to 23,085.95.

Commenting on this, Vinod Nair, head of research at Geojit Financial Services, said, “The global markets witnessed a significant sell-off, prompting a similar response in domestic markets due to strong US payroll data suggesting fewer rate cuts in 2025. This has strengthened the dollar, driven up bond yields, and made emerging markets less attractive. Recent GDP downgrades and slowing earnings amidst higher valuations are weighing heavily on market sentiment.”

As per the National Statistics Office’s (NSO’s) advance estimates of GDP for FY25, released last week, the country’s economy is expected to grow 6.4% during the year as against 8.2% in FY24.

Nair added that the volatility is expected to continue in the near term and investors’ will keep a keen eye on Q3 earnings, RBI policy, upcoming union budget, and policies of US president-elect Donald Trump.

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