Stocks of new-age tech firms lag broader market

Facing scrutiny from investors who become wary of prolonged losses

- BLOOMBERG

NEWLY-LISTED TECHNOLOGY STARTUPS are lagging the broader market as investors grow wary of loss-making firms after a disappointing earnings season.

A custom Bloomberg index of “new-age” stocks — which includes Swiggy, Delhivery and Ola Electric Mobility — has dropped nearly 6% in the past month, compared with a more than 2% rise in the benchmark NSE Nifty 50 Index during the period. The decline came after several of these companies reported losses in the July-September quarter as they focused on growth at the cost of margins.

The divergence shows India’s new-age firms, viewed as symbols of the nation’s digital growth story, are facing greater scrutiny from investors unwilling to tolerate prolonged losses.