After a bruising day at the stock markets on Tuesday dubbed ‘Black Tuesday’, new age tech companies saw their share prices recover on Wednesday. Leading the rebound was Mamaearth, the D2C skincare brand, with its stock price rising nearly 9% from the previous day’s low. Gaming giant Nazara Technologies also saw its shares jump over 6% from the crash witnessed on the previous session.
Food delivery major Zomato, which endured a 1.7% drop on Tuesday, bounced back with close to a 6% gain. Insurance aggregator PB Fintech’s shares boosted over 5% from Tuesday’s closing value. Similarly, logistics player Delhivery’s stock price climbed about 4.5% attempting to recover from its 7.5% dive a day earlier.
The broader markets too displayed signs of recovery with key indices Nifty 50 and Sensex both up by around 2% at noon on Wednesday. Tech stocks bore the brunt of heavy selling pressure on Tuesday amid investor uncertainty in the run up to state election results. Analysts note markets often turn volatile during political events due to shifting expectations. As exit polls failed to predict the actual outcome in some states, Tuesday saw relentless selling wiping out over $2 billion from new economy companies.
Going forward, the performance of these new age tech stocks will be closely watched to see if the comeback gathers pace or the jolt of this mid-week slump lingers. For now, the uptick in share prices, albeit from Tuesday’s lows, offers some relief to investors who had to stomach deep losses in this dynamic sector just a day back.
