On Monday, shares of Indian firms Zomato, One97 Communications, Nykaa owner FSN E-Commerce Venture, and PolicyBazaar plummeted to their lowest levels since its initial public offerings. One97 Communications’ shares plummeted to a low of Rs 881.5 per share, while food-tech behemoth Zomato, which debuted on the public markets in July of last year, plummeted over 20% to a low of Rs 91 per share. Nykaa has dropped roughly 13% from its all-time high of Rs 2574 to Rs 1693.25. From a peak of Rs 1470, PolicyBazaar has dropped almost 10% to Rs 766 per share today. According to Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities, new age and all pricey equities are sliding mostly due to certain factors. “Whenever we see a sudden jump in the 10-year bond yields we see sell-off inexpensive stocks in terms of valuation,” he added.
Indian markets fell sharply today, according to Siddhartha Khemka, Head – Retail Research, Motilal Oswal Financial Services, in line with a broader selloff in global equities, amid concerns about the Federal Reserve’s upcoming meeting, where the US central bank is expected to signal a rate hike and balance-sheet reduction for the year.
“Rate hike expectation, consistent FII selling, rising crude oil prices, geopolitical tensions between Russia and Ukraine and mixed quarterly results so far have been the major reasons for the weakness in equity markets,” he added.
The Sensex dropped 2.62 percent to 57491, while the Nifty dropped 2.66 percent to 17149.1. Yes Securities’ Amar Ambani, Senior President and Head Of Institutional Shares, said that Indian equities have dramatically corrected, likely in response to weaker US equities and higher crude oil prices.
“In my view, there were no positive triggers to take the market upwards in the near term and which is why volumes in large-cap names are down 20-30 per cent in 2022 so far, as compared to 2021, even when market caps are higher by 20-25 per cent on a year-on-year basis,” he said.
