New-Age Tech Stocks Bleed $9 Bn Amid Bearish Broader Market
Between January 19 to 23, forty two out of the 50 new-age tech stocks under Inc42’s coverage plunged in a range of 0.33% to over 20%
Overall, 13 new-age tech companies, including BlueStone, Aequs, PW, IndiQube, DevX, among others, touched fresh lows this week
The market capitalisation of 51 new-age tech companies stood at $127.94 Bn at the end of the week
New-age tech stocks saw a sharp correction this week amid a risk-off mood in the broader Indian equity market. The sell-off was driven less by company-specific shocks and more by valuation reset and profit-booking.
Between January 19 to 23, forty two out of the 50 new-age tech stocks under Inc42’s coverage plunged in a range of 0.33% to over 20%. Amagi became the first startup of 2026 to graduate to the bourses, listing on the exchanges on Wednesday (January 21).
After listing at a discount of 12.2% to the issue price on the BSE at INR 317, the company’s shares gained 18.52% to end the week at INR 375.7. This was a 4% jump from the issue price of INR 361.
Meanwhile, BSE SME-listed EV company Zelio E-Mobility was the biggest loser this week, falling 20.27% to INR 268.85. Overall, 13 new-age tech companies – BlueStone, Aequs, PhysicsWallah, IndiQube, DevX, Yudiz, Awfis, EaseMyTrip, Tracxn, Zaggle, MobiKwik and ArisInfra – touched fresh lows this week.
The bearish sentiment came amid the ongoing Q3 earnings season. This week, Urban Company, BlueStone, Eternal, ideaForge, ixigo and IndiaMart released their quarterly financials. Here’s a look at key numbers:
Shares of only seven new-age tech companies ended the week in the green, gaining in a range of 0.25% to under 5%, while Menhood ended the week flat. Meesho was the biggest winner, gaining 4.87% to end the week at INR 170.
This led to the overall market capitalisation of 50 new-age tech companies plunging $9.5 Bn to $127.05 Bn from $136.55 Bn at the end of last week. With the addition of Amagi, the cumulative valuation of the 51 companies stood at $127.94 Bn at the end of the week.
Now, let’s take a look at some of the key developments at these companies this week:
With that, let’s take a look at the broader market performance this week.
Weak Rupee, Mixed Earnings Sour Sentiment
The Indian equity market remained under pressure throughout the week, as renewed global trade tensions and sustained foreign investor outflows kept sentiment cautious. Sensex and Nifty 50 declined 2.5% each to close at 81,537.70 and 25,048.65, respectively.
Global risk appetite weakened following fresh US tariff threats against European nations on the Greenland issue, triggering a move towards safe-haven assets. Rising global bond yields and uncertainty over the US Supreme Court’s review of Donald Trump-era tariffs further constrained risk-taking across markets.
FIIs accelerated their selling during the week, with total equity outflows for the month touching INR 33,598 Cr— the highest monthly selling since August 2025, according to NSDL data.
“A major factor that pushed FII selling has been the continuous decline in the rupee which touched INR 91.96 to the dollar yesterday. Market participants believe that the delay in the US-India trade agreement will widen India’s trade and current account deficits further impacting the rupee. Sustained FII selling is in anticipation of this rupee depreciation,” said VK Vijayakumar, chief investment strategist at Geojit Investments.
Market participants believe FII confidence will return only with an improvement in corporate earnings and progress on the trade agreement with the US.
Corporate earnings remained mixed, with weak results from banking and IT majors offsetting selective value buying. Looking ahead, markets are expected to track global macros, Fed commentary on rate cuts, and developments around the Union Budget, while stock-specific action is likely to dominate amid the earnings season.
Now, let’s look at the developments at Paytm and Eternal this week.
Paytm Falls On Uncertainty Over RBI Incentive Scheme
Shares of Paytm remained under sustained pressure, ending the week 15.05% lower at INR 1,140.75, as investors reacted to a combination of company-specific concerns and broader market headwinds.
The stock began the week with mixed momentum as profit-booking and weak sentiment in the broader tech and fintech space weighed on valuations. The stock declined in four of the five trading sessions in the week, despite intermittent intraday rebounds.
Yesterday, the stock plunged nearly 10% in a single session — its steepest drop in over a year — falling to levels not seen since October 2025. Heavy volumes accompanied the fall, underscoring strong selling pressure.
A key reason behind this was renewed uncertainty around the Reserve Bank of India’s Payment Infrastructure Development Fund (PIDF). The PIDF, which subsidised deployment of payment infrastructure such as QR codes and point-of-sale devices, had been extended until December 2025. However, there has been no further updates from the central bank on the issue.
Paytm received an incentive of INR 128 Cr under the PIDF for the six months ended September 30, 2025. Investors fear that this could hit Paytm’s bottom line.
“In the scenario that the current Scheme is not extended or replaced, we expect to significantly offset the impact over time through a combination of higher revenues and more targeted sales efforts,” Paytm informed the stock exchanges.
The company is set to release its Q3 numbers on Thursday (January 29).
Eternal Under Pressure Amid Leadership Change
Eternal’s shares remained under pressure this week, as investors digested a series of company disclosures alongside weak broader market sentiment. The stock fell 10.05% to end the week at INR 258.65.
Eternal reported a 73% rise in its net profit to INR 102 Cr in Q3 FY26 from INR 59 Cr in the corresponding period last year.
Operating revenue more than tripled to INR 16,315 Cr from INR 5,405 Cr in Q3 FY25, driven largely by Blinkit’s transition to an inventory-led operating model. On a like-for-like basis, operating revenue grew a healthy 64% YoY.
It is important to note that earlier this fiscal year, Eternal shifted Blinkit from a pure marketplace model to a hybrid structure combining marketplace and inventory-led operations. As a result of this transition, revenue reported for the quick commerce segment now reflects the full gross value of goods sold, rather than only the commission earned, significantly inflating reported revenue figures.
Along with the Q3 numbers, the company also announced a change in leadership, which weighed on the stock. Eternal CEO Deepinder Goyal announced his decision to step back from day-to-day operations at Eternal. The Zomato cofounder, who started the company in 2008 with Pankaj Chaddah, resigned as MD and group CEO to focus on his other ventures – including LAT Aerospace, Temple and Continue Research.
Blinkit CEO Albinder Dhindsa will succeed Goyal as the new chief executive of Eternal. Goyal will transition to the role of vice chairman and continue as a director on the company’s board. His last working day as MD and group CEO will be February 1.
The company has not yet named a successor to Dhindsa at Blinkit.
