CarTrade emerged as the biggest loser among the list of 17 new age tech stocks that ended the week with losses ranging from 0.88% to over 7%

Newly listed D2C brand Menhood emerged this week as the top winner among 11 other startups, posting gains ranging from 0.15% to just under 13%

The Indian market saw a notable decline this week, with the Sensex falling 4.5% to close at 81,688.45, while the Nifty50 fell 4.4% to close at 25,014.60.

In a tumultuous week for the broader Indian market, new-age technology stocks witnessed mixed investor sentiment. Eleven of the 28 stocks under Inc42’s coverage rose within a range of 0.15% to just under 13% this week.

Jaipur-based D2C men’s grooming brand Menhood emerged as the top winner this week. Shares of Menhood’s parent company Macobs Technologies ended the week at INR 145, up 12.93% from last week.

Other winners of the week included Paytm, PB Fintech, Go Digit and RateGain.

Meanwhile, 17 startups ended this week in the red, down from 0.88% to over 7%. Car marketplace CarTrade emerged as the biggest loser this week, with its shares falling 7.36% to end the week at INR 907.75.

Delhivery, EaseMyTrip, Nykaa, Awfis, Ola Electric and Zomato were among the other losers this week.

It is pertinent to note that the market was closed on October 2 on account of Gandhi Jayanti.

Meanwhile, the four-week momentum in the broader market came to an abrupt halt this week. While Sensex fell 4.5% to end the week at 81,688.45, Nifty50 fell 4.4% to 25,014.60.

Escalating geopolitical tensions in the Middle East caused a decline on global markets this week about their impact on fuel prices. Moreover, the stimulus measures announced by China have caused global investors to shift their focus to the Chinese market and away from the Indian market.

Vinod Nair, head of research at Geojit Financial Services, said the decline in the Indian market this week was broad-based. He expects the market to remain under pressure for some time.

“The spike in oil prices due to rising tensions in the Middle East could increase input cost inflation and therefore impact the profit visibility of domestic companies. The market is likely to see a consolidation phase as expensive valuations and unfavorable macroeconomic conditions may push investors to adopt a sell-on-rally strategy,” he said.

Meanwhile, Hrishikesh Yedve, AVP of technical and derivatives research at Asit C. Mehta Investment Intermediates, said the indices have broken through their key support base and point to fresh weakness, which could lead to further downside move.

Meanwhile, 41 companies filed IPO papers in September, the most on record in a single month, amid the bull run in broader markets.

In the context of startups, DevX, a coworking space provider, was the latest to file a draft red herring prospectus (DRHP). It’s a public issue will consist solely of a fresh issue of 2.47 Cr shares.

Besides DevX, foodtech major Swiggy, which submitted its application DRHP updated with SEBI on September 26received a nod from shareholders this week increase the size of a new songe at the IPO to INR 5,000 Cr, compared to INR 3,750 Cr earlier.

Commenting on the IPO trends, Mahavir Lunawat, the founder of Pantomath Financial Services Group, said: “An increasing number of growth-stage companies will hit the streets. Moreover, we will see a trend where multinationals will start tapping the Indian capital market. Moreover, several other market liquidity parameters, especially the monthly flow of mutual funds, have doubled since the last quarter and we are approaching INR 40,000 Cr of money every month. This has fueled the capital market revival in a phenomenal way.”

That said, let’s take a deeper look at the performance of the new-age tech stocks this week.

The total market capitalization of the 28 new-age tech stocks under Inc42’s coverage fell to $80.85 billion at the end of the week, down from $81.69 billion last week.

Honasa’s troubles in the UAE

Shares of Mamaearth parent Honasa Consumers fell 6.27% to end the week at INR 427.95. This also caused the market capitalization to drop to $1.65 billion.

It is pertinent to note that the stock is a highest ever for INR 546.50 on September 10.

The main reason behind the share price drop this week was a ruling by a Dubai court in connection with the company’s dispute with its former UAE distributor RSM General Trading.

Honasa said on Friday that a The court in Dubai confirmed the order seize his assets. However, the court rejected RSM General Trading’s request to revoke the trading license of Honasa’s subsidiary Honasa Consumer General Trading LLC.

The company said this will happen appeal against the latest ruling of the court in Dubai. Honasa also said the order will have no financial impact, adding that it is in the process of initiating contempt proceedings against RSM General Trading in the Delhi HC for non-compliance with the court’s earlier order.

Despite this, the stock ended more than 4% lower on the BSE on Friday.

The company made that clear on Saturday it does not own any assets in the UAE and its subsidiary in Dubai is exempt from the seizure order.

CarTrade continues to decline

In the third consecutive week of losses on the stock markets, CarTrade shares took a big dip this week. The stock fell 7.36% to end the week at INR 907.75. Moreover, its market capitalization also fell to $510 million.

Goldman Sachs Asset Management said so this week increases his commitment at the startup to 7.19%, compared to 5.15% at the end of the June quarter. Goldman Sachs, along with its affiliated entities, has acquired another 9.78 Lakh shares of CarTrade through open market transactions, the company said in a stock exchange filing.

Last week Warburg Pincus exit startup by divesting its entire 8.64% stake in the automotive market for INR 375.1 Cr. Most of the shares were picked up by Mirae Asset Mutual Fund, which bought 30.22 Lakh shares at INR 920 per share.

It is to be mentioned that shares of CarTrade rose 6.02% to a 52-week high of INR 1,034.50 on the BSE during intraday trading on September 25. However, since then the stock has fallen about 12%.

TAC Infosec wins thanks to international expansion

Shares of NSE Emerge-listed TAC Infosec ended the week at INR 723, up 10.40% from last week. The market capitalization also rose to $90.16 million.

Made the start-up multiple takeover announcements this week. In a stock filing on September 30, the cybersecurity startup said it has acquired US-based CyberSandia with the aim of increasing its regional presence and expanding its global operations. CyberSandia has an exclusive government contract to provide IT services to New Mexico, the company said.

Last month, the startup had said it would acquire CyberSandia for $25,000.

TAC Infosec also announced the acquisition of WOS, a wholly owned subsidiary of TAC Cyber ​​Security Consultancy LLC, based in the UAE. The move is aimed at meeting the growing demand for advanced cybersecurity services in the Gulf Cooperation Council (GCC) region.

“Both developments are part of TAC Security’s consistent growth and focus on innovation in the field of cybersecurity. The ESOF (Enterprise Security in One Framework) platform continues to be used by companies and governments around the world to combat evolving cyber threats, allowing the company to lead the way in comprehensive vulnerability management and cybersecurity solutions,” the startup said in a statement.

The new subsidiary in the UAE will enable the company to diversify its customer base and provide cybersecurity services to cross-border customers across the GCC, the statement said.

Previously, TAC Infosec said it had acquired 590 new customers in the US first quarter of FY25of which 149 customers were from the US. At the time, it said it wanted to strengthen its global expansion.