Goodwill Investors’ Education initiative Goodwill’s Eagle Eyes!
Markets oscillate: Directionless: Bear grip visible: PayTm shares up !
Amid volatile session, headlines indices Nifty50 and S&P BSE Sensex made a strong recovery after correcting almost 1 per cent in the early trade. Making a comeback, Nifty closed above 17,500 on a positive note as the index was up 86.80 points (0.50 per cent) at 17,503.30, while Sensex ended up 198.44 points (0.34 per cent) at 58,664.33. The recovery was largely led by metal and pharma stocks as JSW steel, Tata Steel, Sun Pharma were among lead gainers on Tuesday.
The Asian markets were trading mixed this morning as Japanese Nikkei 225 was down 197 points to 29,576, Hang Seng Index was up 49 points at 24,701 and Shanghai Composite traded flat at 3,590 around 7.30 am this morning.
Earlier on Tuesday, the wall street indices closed mixed yesterday. Dow Jones gained 194,55 points or 0.55% to close at 35,813.80, Nasdaq Composite ended 0.50 lower or 79.62 points down o 15,775.14 and S&P 500 was up 7.76 points or 0.17% to 4690.70
Shares of Paytm’s parent company, One97 Communications, rose nearly 5 per cent in early trade on Tuesday after declining for two consecutive sessions.
At 10 am, Paytm shares were trading on the Bombay Stock Exchange (BSE) at Rs 1425.15, up 4.77 per cent. On the National Stock Exchange (NSE), Paytm shares were trading 4.90 per cent higher at the same time.
While Paytm shares have gained in early trade, it remains to be seen if the stock can hold gains as the overall stock market remains volatile. Paytm is unlikely to see aggressive stock market activity due to the ongoing volatility.
Paytm shares fall sharply. What should you do? Wait. It is likely to be up.
On Monday, Paytm shares fell as much as 17 per cent after facing criticism regarding the expensive valuation of its initial public offering. The stock recovered later in the day, but still ended over 12 per cent lower.
As a result, the market capitalisation of the firm has fallen below Rs 1 lakh crore and investors have incurred substantial losses on paper.
In fact, Paytm’s disastrous market debut last week wiped out investors’ wealth to the tune of Rs 38,000 crore. Paytm had ended its first trading session nearly 28 per cent lower, following criticism about its stock valuation.
Paytm had priced its shares at Rs 2,150 each a figure that is higher than most of its listed peers. Even after dipping sharply on the first day, analysts felt Paytm shares were still trading higher than most competitors. Analysts also raised questions over the company’s profitability and growth.
Foreign brokerage Macquarie came out with a strong research note on Paytm’s business and expensive valuation, among other things. The brokerage valued Paytm’s stock at Rs 1,200 after criticising its expensive valuation.
“Paytm has been a cash-burning machine, spinning off several business lines with no visibility of achieving profitability. Unless Paytm lends, it can’t make significant money by merely being a distributor,” the brokerage said.
Click to open an Account : https://gudwil.in/smart
For all your investment needs feel free to reach us.
Give us Missed Call us on 90037 90027 . For Support : 044-40329999
