New-Age Tech Stocks Rally For Second Consecutive Week

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The Reserve Bank of India’s decision to take a pause in repo rate hike boosted the Indian equity market, and new-age tech stocks have been rallying for the second consecutive week. Among the 14 new-age tech stocks under Inc42’s coverage, 11 stocks rose this week, with DroneAcharya surging more than 10%. Other gainers include Tracxn Technologies, Nazara Technologies, Nykaa, Paytm, RateGain, and Zomato. However, shares of PB Fintech, which was the biggest gainer last week, slumped 7% this week. In the broader equity market, Sensex rose 1.43% to 59,832.97, and Nifty50 gained 1.38% to 17,599.15. Nykaa’s shares gained almost 11% in two straight sessions this week but fell after reporting its Q4 2023 revenue update, revealing that consumer pullback in discretionary spending has had some impact on its fashion business.

DroneAcharya’s shares have been facing volatility since February, but it surged 10% this week after concluding the pilot stage of drone manufacturing. Nazara, being one of the leading players in the online gaming industry in India, has taken cautious steps to explore more opportunities in the real money gaming segment. Real money gaming refers to games where players can win real money by playing games online. This segment has the potential to generate significant revenue for companies like Nazara, but it is also subject to stricter regulations. Nazara has been expanding its presence in the real money gaming segment by acquiring and investing in companies that operate in this space. For example, in 2021, Nazara acquired a majority stake in OpenPlay, a real money gaming platform that offers games like poker, rummy, and fantasy sports. This acquisition is expected to help Nazara strengthen its position in the real money gaming segment. Despite the regulatory uncertainties, the online gaming industry in India is expected to grow in the coming years, driven by the increasing adoption of smartphones and the internet. Nazara, with its focus on mobile gaming and its expanding presence in the real money gaming segment, is well-positioned to benefit from this growth.