Paytm & Nazara Tech: What Amit Khurana of Dolat Capital says on new-age stocks

Amit Khurana, Head of Equities at Dolat Capital, on Wednesday said investors should maintain a 'cautious' approach in the first half of 2025. "Some of the stocks and sectors which have done well are now also quoting a significant premium to the long-period averages. Some are quoting such valuations which are difficult to justify even in the most bullish scenario. So, a reality check on what to expect in terms of returns will be the theme for the H1 of calendar year 2025. As things evolve, one will be in a position to take a big picture view and accordingly re-align their portfolios," the market expert told Business Today.

In response to a query on new-age companies, Khurana said, "We still have Paytm (One 97 Communications Ltd) in our top picks. Nazara Technologies Ltd is also there. The pace of activity that these companies are witnessing in their core businesses, in some cases, makes us believe that the valuations can sustained. Paytm and Nazara are one of those names.

Paytm shares slipped 2.91 per cent to trade at Rs 987.85 and Nazara Tech was down 0.82 per cent at Rs 1,006.75.

Meanwhile, Indian equity benchmarks were off to a muted start today but returned to positive territory as the session progressed, led by gains in banks, financials and consumer stocks. Broader markets (mid- and small-cap shares) were mixed.

13 out of the 19 sector gauges -- compiled by the NSE -- were trading in the green. Sub-indexes Nifty Bank, Nifty Financial Services, Nifty Consumer Durables and Nifty FMCG were outperforming the NSE platform by rising as much as 0.26 per cent, 0.29 per cent, 0.36 per cent and 0.30 per cent. In contrast, Nifty Metal was down 0.46 per cent.

The overall market breadth was strong as 2,490 shares were advancing while 1,231 were declining on BSE. 165 stocks remained unchanged.

Foreign institutional investors (FIIs) sold Rs 4,645.22 crore worth of shares on a net basis during the previous session, while domestic institutional investors (DIIs) bought Rs 4,546.73 crore worth of shares, exchange data showed.