Paytm stock reached record low, Mukesh Ambani connection is behind this fall
What is the reason for this decline
One 97 Communications Ltd. is the parent company of Paytm. Its stock fell to a record low today. There is a Mukesh Ambani connection behind this decline. According to Macquarie analysts, Mukesh Ambani’s entry into the finance services business will prove to be risky for Paytm. Reliance Industries Limited’s Jio Financial Services may eat into Paytm’s market share. Macquarie said that Reliance already has an NBFC license and it can take on a large scale of customers. This report of Macquarie has dropped the confidence of investors. Due to this, this big decline was seen in Paytm today.
lowest level since listing
Paytm stock today touched its lowest level since its debut. This stock has fallen about 75 percent from its listing price. The reason behind this is also the increasing losses of Paytm and reducing its stake in the company by SoftBank Group. Analysts at Macquarie had a target of Rs 450 on Paytm stock with an underperform rating.
Market closes with a rise
At the same time, the Indian stock market closed with an increase today. The decline in the domestic stock markets for the last three days came to an end on Tuesday. BSE Sensex climbed over 274 points. Infosys and Reliance Industries, which have a strong stake in the index, led the market to gain on buying shares. The thirty-share BSE Sensex closed at 61,418.96 points with a gain of 274.12 points, or 0.45 per cent. It had climbed up to 321.79 points at one stage during the trade. At the same time, the National Stock Exchange’s Nifty also closed at 18,244.20 points with a gain of 84.25 points, or 0.46 percent.
The rise in these stocks
IndusInd Bank, NTPC, UltraTech Cement, Titan, Infosys, Tech Mahindra, Tata Consultancy Services and Larsen & Toubro were major gainers in the Sensex pack. On the other hand, losers included Nestle, Bharti Airtel, PowerGrid, HDFC Bank and Kotak Mahindra Bank. In other Asian markets, Japan’s Nikkei and China’s Shanghai Composite were in profit, while South Korea’s Kospi and Hong Kong’s Hangseng were in losses. Foreign institutional investors sold shares worth Rs 1,593.83 crore on Monday, according to stock market data.