Paytm shares saw heavy correction on the BSE early Friday, dropping more than 7% to reach an intraday low of ₹653.55 amid domestic equity indices opening lower tracking global cues concerning an overarching fear of recession.
What Happened? Paytm shares plunged early on Friday after a sustained rally for four straight days till Thursday on the back of reporting a healthy set of Q3 results and major global brokerages raising their target price.
A bevy of large block deals saw Paytm’s shares correct by close to 7%, dropping to ₹653 on the BSE after opening at ₹705 a share.
Paytm is seeing correction as the wider market fell on Friday with investors across the globe awaiting US inflation data, which is due next week. Both Sensex and Nifty 50 were down 0.2% and 0.19%, respectively, at the time of publishing.
Meanwhile, fellow digital-age stock Zomato reported quarterly earnings on Thursday that have left investors unimpressed as net loss widened to ₹346.6 crore, up 38% from ₹250.8 crore in the previous quarter.
Get Ring The Bell, Benzinga India’s weekly briefing. Designed specifically for investors like you.
Earlier this week, the Paytm parent reported its quarterly numbers where revenue surged 41% to ₹2,062 crore in the December quarter when compared to the year-ago period, while net loss narrowed to ₹392 crore.
The digital payments and financial services company’s loss in the corresponding period last year was ₹778 crore, whereas it stood at ₹572 crore in the September quarter.
In a letter to shareholders, Paytm founder and chief Vijay Shekhar Sharma said the company had achieved operating profitability in Q3, which is three quarters ahead of the guidance which was for the September quarter.
Price Action: Paytm shares traded at ₹667.40, dropping 5.68% in the early hours of trading on Friday.
© 2023 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.