Paytm Stock Faces Sharp Decline Ahead of Monday Opening
Investors are closely watching the performance of Paytm’s stock as the market gears up to open on Monday. The payment gateway’s shares experienced a significant downturn, dropping by 15% in the final two days of the previous trading week.
Friday’s Plummet
On Friday, Paytm shares plummeted by 6.09% to close at ₹419.85 on the BSE. Intraday, the stock witnessed a substantial decline of 8.67% to ₹408.30. Similarly, on the National Stock Exchange, the company’s stock fell by 6.15% to ₹419.15, with an intraday drop of 8.20% to ₹410.
Week’s Performance
The decline over Thursday and Friday amounted to 15.48%, resulting in a loss of ₹4,870.96 crore from Paytm’s market valuation on the Sensex. Notably, the stock hit the lower circuit on Thursday following a two-day rally.
Volatility in Recent Days
Wednesday saw a temporary relief for Paytm, with shares surging by 10% after rebounding over 3% on Tuesday. However, this followed three days of sharp falls from February 1 to 5, during which the stock crashed by over 42%, erasing ₹20,471.25 crore from its market valuation.
RBI’s Regulatory Action
The sharp decline in Paytm’s stock comes in the wake of regulatory action from the Reserve Bank of India (RBI), which barred Paytm Payments Bank from accepting new deposits after February 29.
The RBI order stated that no further deposits, credit transactions, or top-ups would be allowed in customer accounts, prepaid instruments, wallets, FASTags, NCMC cards, etc., after the specified date, except for interest, cashbacks, or refunds. This action was taken due to “persistent non-compliance” with regulatory guidelines.
RBI Governor’s Statement
RBI Governor Shaktikanta Das addressed the issue, stating that regulatory actions were necessary in cases of persistent non-compliance. He emphasized that entities are given ample time to comply with regulations and that such actions are taken only when necessary.
Market Reaction and Future Outlook
The market’s response to Paytm’s situation remains uncertain as investors await further developments. The company’s stock performance on Monday’s opening will be closely watched, with analysts expecting heightened volatility in the coming days. Paytm’s ability to address regulatory concerns and restore investor confidence will likely determine its trajectory in the near future.
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