After snapping two days of winning streak, shares of One97 Communication, parent of Paytm, fell 10% to hit the lower circuit of Rs 446.65 on February 08.
The Reserve Bank of India’s Deputy Governor Swaminathan J in a post-Monetary Policy Committee press conference said that the actions on Paytm Payments Bank were due to continued non-compliance of the regulatory norms.
According to Ajit Mishra, senior vice president of technical research at Religare Broking, “the move indicates more pain ahead and it could retest the recent low i.e. 395,” a 52-week low level, which it hit on February 06. Also, the investors must refrain from taking new positions on the company’s stock till there’s any clarity, he added.
On February 07, the stock showed some recovery and gained 10% to hit the upper circuit of Rs 496.25. The company hit the 52-week high of Rs 998.30 on October 20, 2023.
The stock of Paytm saw selling when the banking regulator denied the company to onboard new customers from February 29 onwards.
On February 07, the company’s Chief Executive Officer went to meet the Finance Minister.
In the last five days, the company has fallen 8.3%, 35.52% in the last month, and 33.32% in the last year. To give more perspective, shares of Paytm eroded 71.38% wealth of investors in the last five years.