The share price of food delivery platform Zomato Ltd dropped below Rs 100 for the first time since it listed in July 2021, falling more than 10 percent in the morning trade on January 24.
The fifth straight session of losses has seen Zomato slip 25 percent during the period, wiping out around Rs 26,000 crore of investor wealth.
The stock hit a new low of Rs 99.10 on the BSE, down 12.80 percent intraday. At 10am, the scrip was trading at Rs 99.20 on BSE, down 12.7 percent from its previous close.
Recent reports suggesting the Federal Reserve rolling back liquidity amid higher inflation and indicating multiple interest rate hikes this year have weakened the case for investment in richly priced technology stocks with no near-term visibility on profitability.
Also read: Morgan Stanley reduces stake in Paytm substantially
Shares of One97 Communications, the parent of Paytm, CarTrade, PB Fintech, and Fino Payments Bank have slipped between 10 and 50 percent from their IPO prices. Shares of Nykaa parent FSN E-commerce have sunk 21 percent from their highs post-listing.
The next Fed meeting is scheduled on January 25-26. "We expect strong but slowing growth, elevated inflation and accelerated Fed policy normalisation in 2022, including four rate hikes and balance sheet runoff in July,” analysts said.
In the US, many technology stocks are reeling in a bear market as investors flock from high-priced stocks to those with valuation comfort.
Investors' sentiment was also dampened after recent reports suggested that the government was planning a wage code bill, which, if implemented, analysts said, would drastically alter the way industrial houses treat their employees and also impact the working hours, take-home salaries, and other rights of employees.
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