Tech Stocks Rebound as Benchmark Indices Break Losing Streak
The Indian new-age technology sector witnessed a significant resurgence this week, with major stocks posting substantial gains as broader market indices snapped an eight-week losing streak. Despite a midweek sell-off that temporarily dampened sentiment, the recovery was led by fintech and edtech players, signaling renewed investor confidence in the segment.
MobiKwik emerged as the top performer among new-age tech stocks, surging nearly 25% to close at ₹245.40. The sharp rally was mirrored by PhysicsWallah, which rose 19.68%, reflecting strong momentum in the education technology space. These gains contributed significantly to the sector's overall positive trajectory, offsetting losses seen in other parts of the market.
Other notable gainers included Fino Payments Bank, which climbed 8.9%, and Nykaa, which added 5.97% to its valuation. Eternal also posted modest gains of 3.14%. The broader market saw several stocks touching fresh highs, including E2E Networks, Shadowfax, SEDEMAC, Zelio E-Mobility, Aequs, and Kissht, indicating a broad-based buying interest across diverse tech sub-sectors.
Corporate Actions Drive Specific Stock Movements
Individual corporate developments played a pivotal role in the performance of several key players. Ola Electric saw its stock close at ₹35.13 on the BSE, supported by news that founder and CMD Bhavish Aggarwal pledged a 4.32% stake to participate in the company's ₹1,000 Cr rights issue. The rights issue is scheduled to open from October 22-30 and is priced at ₹27.
In the drone technology space, ideaForge signed a ₹151 Cr Technology Development Board loan agreement for its YETI heavy-lift, long-range autonomous aerial logistics vehicle project, with funds to be disbursed in tranches. However, the company also saw promoter activity as CEO and promoter Ankit Mehta pledged 2.8 Lakh shares worth ₹20.56 Cr to Infina Finance for personal financial requirements, bringing his total pledged shares to 6.5 Lakh, or 1.3% of the holding.
Financial services firm Aye Finance reported a 26% year-on-year rise in its Q2 Asset Under Management (AUM) to ₹7,604 Cr, with disbursements increasing 10% to ₹1,403 Cr. Despite these operational metrics, the company's shares declined during the week.
Fino Payments Bank provided detailed operational updates, reporting that September loan referral disbursals jumped 223% year-on-year to ₹278 Cr. The bank also saw renewal income rise 20% to ₹28 Cr and average deposits increase 13% to ₹2,794 Cr, contributing to its stock's 8.9% gain.
Investor Exits and Strategic Shifts
While many stocks rallied, significant investor exits marked the week for several high-profile companies. Peak XV sold 12.2 Lakh Awfis shares for ₹29.8 Cr at ₹245 apiece, cutting its holding by more than half. This sale comes despite Awfis reporting a 140% year-on-year profit rise in Q1 FY27 to ₹24 Cr. Nevertheless, Awfis's stock has fallen nearly 59% over the past year.
Similarly, TPG executed its fourth sale of Shadowfax shares in three months, offloading 40 Lakh shares for ₹114.8 Cr. This transaction brings TPG's cumulative sales to over ₹729 Cr. The selling pressure contrasts with Shadowfax's stock performance, which has rallied over 144% in the last six months.
In the edtech sector, Fractal appointed TPG MD Vivek Mohan as its new chairman, while outgoing chairman and Apax Foundation co-CEO Rohan Haldea remains a director. The company also incorporated a wholly owned step-down subsidiary, FRACTAL AI QFZ LLC, in Qatar Free Zones with QAR 1 Lakh capital to focus on software development, IT consulting, network support, and AI services.
Meesho approved an additional investment of up to ₹50 Cr in Kirana Club parent Retail Pulse Labs, to be made in tranches over a year after the first acquisition tranche closes. This follows Meesho's proposed ₹202 Cr acquisition, which remains incomplete with the consideration unchanged.
Market Capitalisation and New Listings
The broader tech ecosystem saw expansion with Snapdeal parent AceVector becoming the 67th stock under Inc42’s coverage after listing on Monday (October 5). The stock closed the week at ₹30.61, up 8.16% from its BSE listing price of ₹28.30 but remained 4.3% below its ₹32 IPO price.
Inclusion of AceVector brought the combined market capitalisation of the 67 companies covered by Inc42 to $154.71 Bn, up from $153.61 Bn for the previous 66 companies last week.
Not all new-age stocks fared well, with IndiaMART, Fractal, Turtlemint, PB Fintech, Klassroom, and Yudiz hitting fresh lows. NSE SME-listed Yudiz led the declines, falling 13.93% to ₹20.70, while BSE SME-listed Zappfresh dropped 9.24% at ₹54.90.
FirstCry subsidiary GlobalBees signed an MoU to sell its entire 51.54% stake in Mush Textile for ₹5.69 Cr, with completion expected by October 15. The transaction covers Mush and BePlush, which generated ₹16.12 Cr turnover across GlobalBees subsidiaries in FY26. Existing shareholders Nihar Gosalia and Vaishvik Brahmbhatt will acquire 13.45% and 38.09% stakes, respectively.
Aequs invested ₹15.75 Cr in a joint venture, Ajna Aerospace & Defence, receiving 45 Lakh partly paid-up rights shares priced at ₹100, with ₹35 paid up. Meanwhile, Nykaa projected Q2 FY27 net revenue growth in the high-twenties percentage range, and Honasa expects net sales value growth in the low-thirties percentage range.