The markets ended the week on a flat note, and investors maintained a mixed outlook towards new-age tech stocks.
Of the 41 new-age tech stocks under Inc42’s coverage, 24 gained in a range of 0.06% to under 9%.
Seventeen stocks declined in a range of 0.67% to over 8%. The total market cap of the 41 new-age tech companies stood at $110.93 Bn at the end of the week, versus $113.17 Bn last week.
Following a prolonged bearish investor sentiment, BSE SME listed dronetech company DroneAcharya gained the highest 8.74% last week to end Friday’s trading session at INR 62.07. Its competitor, ideaForge, too, gained 4.33% to end the week at INR 494.25.
Both drone tech companies rode the broader defence-sector rally in India after the Defence Acquisition Council (DAC) approved procurement proposals worth INR 79,000 Cr for the armed forces, including missiles, surveillance systems, and high-mobility vehicles, triggering strong investor interest across defence stocks.
Shares of NSE SME-listed TAC Infosec hit the upper circuit in two of the three trading sessions last week. The cybersecurity firm’s rally followed , with net profit surging 138% YoY to INR 15.6 Cr and revenue climbing 137% to INR 29.5 Cr. The stock closed the week 8.56% higher at INR 856.20, making it the second-highest gainer of the week.
Meanwhile, shares of five new-age tech companies – WeWork India, Paytm, Ather, Zappfresh, and BlackBuck – reached fresh highs last week.
Zappfresh, Ather Energy and Paytm closed higher than last Friday, while BlackBuck and WeWork India ended in the red.
The biggest loser of the week was online travel aggregator Yatra, whose shares fell 8.23% to close at INR 154.40. The decline was largely driven by profit-booking, as the stock had already gained over 40% YTD.
Other losers included Eternal, Nykaa, Swiggy, ixigo, MapmyIndia, and Smartworks, among others.
Here’s a look at other key developments during the week.
- Adding to its tax woes, Zomato parent , totalling INR 128.4 Cr from state tax authorities in Uttar Pradesh.
- Delhivery’s recently acquired business Ecom Express also received a GST demand of INR 1.3 Cr from tax authorities in Bihar on account of the disallowance of input tax credit and short payment of tax.
- DroneAcharya secured a work order worth INR 2.6 Cr from the Indian Army to supply 500 subtactical very short-range drones.
- EV major Ather allotted 3.14 Lakh equity shares worth INR 22.15 Cr (based on Friday’s closing price) to eligible employees on Friday.
- MobiKwik’s chief operating officer (operations), Mohit Narain, resigned from the company on Friday. The ex-CPO quit the company due to impending health issues.
- WeWork India issued a clarification rejecting a report by proxy advisory firm InGovern, stating its IPO structure reflects strong financials and promoters’ continued commitment. The company also refuted InGovern’s concerns over financial health, corporate governance, and IPO structure.
- Ventura Securities issued a ‘BUY’ recommendation to Paytm with a price target (PT) of INR 2,074 on Friday. This reflects a 61% upside from Friday’s close.
- ArisInfra early investor Premlatha Agarwal in the B2B ecommerce company via a bulk deal worth INR 7.4 Cr.
With that, let’s take a look at what happened in the broader market last week.
The Indian equities market extended its winning streak for the fourth consecutive week, closing the Diwali-shortened week on a modestly positive note.
The Nifty 50 rose 0.33% to 25,795.15, while the Sensex advanced 0.31% to 84,211.88, as early optimism driven by strong Q2 earnings and foreign inflows outweighed late-session profit-booking. Important to note that markets were closed on Tuesday and Wednesday on account of Diwali Laxmi Pujan and Diwali Balipratipada. Muhurat Trading was conducted on Tuesday.
“Record festive sales underscored India’s surge in consumer demand this season, powered by resilient household spending and GST-driven affordability. PSU banking stocks led the rally, buoyed by news of potential consolidation and better-than-expected results,” Vinod Nair, head of research at Geojit Investments, noted.
However, the India-US trade negotiations continue to materialise, with reports saying that both countries are very near agreeing upon the agreement. Investors would remain watchful of developments in the trade negotiations. Besides, global market sentiment will largely hinge on key interest rate decisions from the FED & ECB by next week, which are expected to influence market direction in the near term.
Besides, investors would keep a watch on Q2 FY26 results.
In the coming week, new-age tech companies PB Fintech, Go Digit, Cartrade, ixigo, Swiggy and Fino Payments Bank will be announcing their financial performance for the quarter.
With that, here’s a look at what the week was like for Ola Electric and Urban Company.
Urban Company Stock Faces Volatility as Brokerages Sound Caution
Urban Company’s stock experienced significant volatility during the week, touching an all-time low of INR 145.20. The share price declined by approximately 4% over the past week, closing at INR 147.10 on October 24.
The decline was primarily attributed to .Morgan Stanley initiated coverage with an ‘Underweight’ rating and a target price of INR 117, citing that the company’s growth prospects were already reflected in its valuations.
It expects 18-22% CAGR in net transaction value (NTV) for FY25-28, with India consumer services EBITDA margins improving to 30% in the medium term, but remains cautious due to high churn and supply constraints.
Similarly, Goldman Sachs started coverage with a ‘Neutral’ rating and a target price of INR 140, expressing concerns over the stock’s premium valuation despite strong business fundamentals.
Like Morgan Stanley, Goldman Sachs also shared concerns over the company’s premium valuations in comparison with peers. While it acknowledged strong execution and defensible business fundamentals, it believes the current price reflects the upside.
Additionally, the for anchor investors on October 16 released approximately INR 683 Cr worth of shares into the market, contributing to the downward pressure on the stock price.
Ola Electric Goes Fundraising, Again
It was a tough week for Ola Electric, with the company’s shares falling 7.65% to end the week at INR 52.85. The stock remains nearly 48% below its 52-week high of INR 102.50, reflecting ongoing investor concerns.
The company’s challenges were compounded by a police report implicating CEO Bhavish Aggarwal and a senior executive . The report alleges workplace harassment and delayed salary payments, leading to a case of abetment to suicide.
Meanwhile, the company’s business outlook also seems to be in a bit of a turmoil. In a note released on Friday, Goldman Sachs revised its outlook on Ola Electric, maintaining a ‘Buy’ rating but lowering the 12-month target price from INR 72 to INR 62 per share.
The firm cited concerns over the company’s valuation and competitive pressures amid its declining share in the country’s growing E2W market.
To bolster its financial position, Ola Electric’s board is scheduled to meet later today to discuss raising funds through equity share issuance.
This follows a recent INR 877.6 Cr preferential share issuance to its cell technology subsidiary and the