Paytm climbs over 6% today, leading the BSE large-cap gains

Indian benchmark indices ended the session substantially lower, dragged down by significant losses in the information technology, telecommunications and utilities sectors. The BSE Sensex fell 0.34% to 65,393 level at the close. The Nifty 50 index declined 0.28% to a level of 19,384.    

Broader indices significantly outperformed the main indices. The top BSE Large-cap gainer, One 97 Communications Ltd, attracted investors due to its robust upswing in an otherwise weak market. On an intraday basis on Wednesday, shares of One 97 Communications Ltd (Paytm) soared around 6%, reaching a day’s high of Rs 866 per share on the BSE. 

The company recently released operating performance for Q1FY24, stating that it has continued to expand its customer base, with average monthly transacting users (MTU) at 9.2 crore for the quarter (average for three months ended June 2023), up 23% year-on-year. 

As of June 2023, the number of merchants paying subscriptions for payment devices had reached 79 lakh, an increase of 4 lakh devices in the month and 11 lakh devices in the quarter. Merchant Payment Volumes for the quarter were 4.05 lakh crore, representing a 37% year-on-year growth. 

The company previously announced its partnership with Shriram Finance Limited, one of India’s leading retail NBFCs, to provide financial services to its users, including loan products. Shriram Finance’s products will be digitally available on Paytm’s platform as part of this partnership, helping to extend access to credit and drive financial inclusion in the country. 

Since the beginning of the year, shares have seen substantial buying interest and have soared around 60% year-to-date. Paytm is India’s payment super app offering consumers and merchants the most comprehensive payment services. It enables commerce for small merchants and distributes various financial services offerings to its consumers and merchants in partnership with financial institutions. 

Keep a close eye on this stock for the upcoming sessions! 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet, and is subject to changes. Please consult an expert before making related decisions.