Stocks of Zomato and Nykaa defy market fall

The carnage in the mid engulfed scores and smallcap space has of stocks over the last month.

- NIKITA VASHISHT

However, stocks of companies such as Zomato and Nykaa have largely bucked the trend, rallying up to 11 per cent during the period.

Data from ACE Equity shows that shares of Zomato, Nykaa (FSN-e Commerce), and PB Fintech have surged in the range of 4.6 per cent to 11.4 per cent in one month, as against up to 6.3 per cent decline in the Nifty Midcap, and Smallcap indices. Paytm, however, has tumbled 7.3 per cent amid regulatory action by the Reserve Bank of India (RBI) against Paytm Payments Bank, and logistics firm Delhivery has dipped 0.3 per cent during the period.

The Nifty 50 and Nifty 500 indices have slipped 0.5 per cent and 1.2 per cent, respectively. According to analysts, this resilience is an offshoot of the U-shaped trajectory the pack has been witnessing since 2021. And the upside, he said may have more legs, albeit in selective stocks.

"Starting with Zomato, new-age stocks experienced blockbuster listings in calendar year 2021, which fizzled out in CY22. Later, in 2023, the stocks went into a consolidation and bottoming-out phase, which now seems to be reaping returns for investors who have held on to these stocks," said Sachin Shah, fund manager at Emkay Investment Managers.