Indian Tech Stocks Face Sell-Off as Swiggy Declines 24.5%
New-age tech stocks lost $11 billion in market capitalization this week as Swiggy led a broad downturn amid wider equity market weakness.
The Indian tech sector experienced a significant market correction this week, with 63 out of 67 tracked companies posting declines between 1.03% and 24.5%. The combined market capitalization of 69 tracked firms now stands at $152.32 billion, representing approximately 3.2% of the total BSE-listed market.
Swiggy emerged as the week's primary laggard, falling 24.5% to hit an all-time low. The decline followed second-quarter results that highlighted persistent losses in the company’s Instamart quick commerce division. The sell-off also pushed several other prominent names, including FirstCry and Paytm, to new 52-week lows.
Broader market sentiment was hampered by rising crude oil prices, geopolitical tensions in the Middle East, and persistent net selling by foreign institutional investors. Recent IPO entrants Zetwerk and Tonbo Imaging also struggled, closing below their listing prices on their debut day.
Despite the downward trend, some companies showed resilience. Travel aggregator ixigo gained 1.45% following a return to profitability for the second quarter. Looking ahead, investors remain focused on upcoming central bank policy decisions and further corporate earnings reports to gauge market direction.