Bloodbath in Zomato, PolicyBazaar, Nykaa shares on low valuations, broader market crash

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New Delhi, Jan 24 (IANS) Zomato, PolicyBazaar, and Nykaa and several other companies' stocks took a hard beating on Monday amid the market crash as analysts feel these companies have low valuations.

Shares of the food delivery aggregator hit the 20 per cent lower circuit intraday and settled at Rs 90.95 on Monday.

PB Fintech-backed PolicyBazaar's shares fell 10.6 per cent and settled at Rs 772.5, whereas FSN-E Commerce Ventures-backed Nykaa fell 12.7 per cent and settled at Rs 1,745.

Notably, all the three new-age companies made their debut on the exchanges in the recent months.

Zomato's market capitalisation slipped well below Rs 1 lakh crore with the recent sharp decline, data showed.

"... While all sectors hit rough weather, stocks of the new age tech companies were the most affected due to drop in growth of profitability amid expensive valuations," said Vinod Nair, Head of Research at Geojit Financial Services.

"Sell off in global markets, weak Q3 results and pre-budget nervousness triggered heavy sell-off in the domestic bourses as risk sentiment took a blow ahead of the FOMC meeting starting tomorrow. Investors are keenly awaiting the result of the two-day Fed meeting where the US Central Bank is expected to provide more guidance on its rate hike plans."

On Monday, the 30-scrip Sensitive Index (Sensex) and broader 50-scrip Nifty saw a freefall due to continued sell-off by foreign institutional investors coupled with fear of policy tightening by the US Fed.

Besides the low valuations, the weak broader market performance also weighed on these new-age companies during Monday's session.

This is the fifth consecutive decline in sessions for the indices.

Sensex closed at 57,491 points, down 2.6 per cent, or 1,545 points, whereas Nifty at 17,149 points was down 2.7 per cent, or 468 points.

--IANS

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