On Monday, the first trading day of the week, both the stock market indexes Sensex and Nifty opened on the red mark, but Paytm stock was seen running at a stormy pace.
Paytm Share Rise: There is a decline in the Indian stock market today. The 30-share Sensex of the Bombay Stock Exchange and the Nifty of the National Stock Exchange are trading sluggishly in the red. But despite the decline in the market, Paytm’s share is running at a rocket speed. This stock is trading with a jump of 8 percent.
Paytm’s share jumps by more than 8%
Paytm’s share opened in the green zone on Monday, the first trading day of the week. When the market opened at 9.15 am, Paytm stock opened at the level of Rs 440.20, up about 3 percent from its previous close. While on the one hand the decline in the market was seen increasing, on the other hand Paytm Share kept gaining momentum. By the time the news was written, at 11.30 am, this stock had jumped more than 8 percent to reach the level of Rs 475.85.
Paytm’s market cap has increased so much
It is worth noting that the 52-week high level of Paytm Stock is Rs 998.30, while its 52-week low level is Rs 310. The effect of the rise in the stock on Monday has also been seen on the company’s market capitalization (Paytm Market Cap) and it has increased to Rs 29980 crore. For the last one month, this stock is seen making a comeback and its price has jumped by about 20 percent in a month. At the same time, in the last 5 days, it has seen a strong rise and it has climbed 14 percent.
RBI action resulted in huge loss
Earlier this year, after the Reserve Bank of India banned Paytm’s banking unit Paytm Payments Bank, the company suffered heavy losses and its valuation fell sharply. This can be gauged from the fact that despite the recent boom, it is down by 32.07 percent in the last six months.
Referring to the action taken by RBI on Paytm Payment Bank, on 31 January 2024, an order was issued to ban the services of Paytm’s banking branch Paytm Payment Bank. The Reserve Bank had ordered regulatory action against Paytm Payments Bank over non-compliance and supervisory concerns. It asked the bank to stop deposits, transactions, prepaid and top-ups in customer accounts, wallets, FASTags, NCMC cards and banned adding any new customers. After this, Paytm’s shares crashed badly.
Paytm founder made a big plan for the company
Now talking about the reason behind Paytm’s stock suddenly rocketing, let us tell you that after RBI’s action, Paytm’s valuation, which suffered huge losses, may have come down to $3.5 billion, but Paytm Founder Vijay Shekhar Sharma is focusing on building it afresh and according to reports, in a program recently, he has said that the valuation of the company is going to reach $100 billion.
Vijay Shekhar Sharma said that we are now better prepared to face the challenges. It is worth noting that Paytm is working afresh on its business segment and the impact of such statements of the founder is also visible on Paytm’s stock.
(Note- Before making any investment in the stock market, please take advice from your market experts.)
