Paytm's Stock Performance
Shares of One97 Communications Limited, the parent company of Paytm, surged 5% to hit the upper circuit in early trading on Monday, reaching INR 428 on the NSE. This follows the Reserve Bank of India's (RBI) recent advice to the National Payments Corporation of India (NPCI) to review Paytm's request to be a third-party application provider for UPI payments.
RBI's UPI Directive
The RBI's directive aims to ensure seamless digital payments for UPI customers using the '@paytm' handle, operated by Paytm Payments Bank, and reduce concentration risk in the UPI system.
Market Reaction and Performance
Paytm's stock had faced a downturn after the RBI imposed strict restrictions on Paytm Payments Bank on January 31, barring various transactions post-February 29. However, the stock rebounded towards the end of last week, opening 5% higher on February 21 and hitting the upper circuit at INR 395.25 on the BSE.
Future Outlook
With the RBI setting a March 15 deadline for Paytm Payments Bank to cease deposits, credit transactions, and other banking services, including UPI facilities, the market is closely monitoring Paytm's response and its impact on the company's performance.
Market Trends
Indian new-age tech stocks had a mixed performance last week, with Paytm emerging as the biggest gainer, with its shares surging 19.4%. The combined market cap of these stocks reached nearly $45 Bn by the end of trading on Friday.
