New-age tech stocks rise tracking gains in global tech shares

The NASDAQ 100 index shot up nearly 4 percent on March 16 even as the US Federal Reserve raised interest rates by 25 basis points.



Shares of new-age technology stocks rose on March 17 tracking similar gains for shares of technology companies in the US and Hong Kong.

Shares of Zomato, FSN E-Commerce, Fino Payments Bank, and PB Fintech were 2-11 percent on the National Stock Exchange (NSE).

The NASDAQ 100 index shot up nearly 4 percent on March 16 even as the US Federal Reserve raised interest rates by 25 basis points for the first since cutting rates sharply in March 2020 due to the onset of the COVID-19 pandemic.

In Hong Kong, technology stocks were back in favour as the Chinese government hinted at possible stabilisation of the stock market and halt of its enormous crackdown on the sector over the past year.

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Analysts suggested that investors were likely engaging in some bargain buying in these stocks given that much of the adverse impact from increase in interest rates has already been factored in by market participants.

That said, valuations of Indian new-age technology companies tend to move hand-in-hand with global technology stocks and any upward revision in global stocks is likely to affect domestic counterparts, an analyst with a foreign brokerage firm said.

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Prior to March 17’s gains, shares of new-age technology companies had collapsed 40-70 percent from their initial public offering price. Most new-age technology companies brought their IPOs in 2021.

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