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Nykaa stock rises by 9% despite market sell-off

Nykaa stock rises

Nykaa stock rises by 9 percent

Nykaa stock rises – In an otherwise sluggish market on Wednesday, Nykaa (listed as FSN E-Commerce Ventures Limited) shares soared almost 9% to an intraday high of Rs 1,414 on the BSE. The stock began at Rs 1,300, slightly higher than the previous close of Rs 1,291.15. On the BSE, the company’s market capitalization increased to Rs 66,280 crore. The stocks are higher than their 5-day moving averages, but they are lower than their 20-day, 50-day, 100-day, and 200-day moving averages. It reached an all-time high of Rs 2,574 on November 26, 2021, and has since dropped by over 45 percent.

During the recent violent sell-off on Dalal Street, shares of new-age Internet companies such as Zomato, Paytm, Nykaa, and PB Fintech have been under tremendous selling pressure. “In the near run, stock market prices are solely based on sentiments. Long-term investors must focus on stories with minimal debt and regular cashflows, as well as those that are trading at reasonable values, among other things “Green Portfolio Analyst Sreeram Ramdas said Business Today.

Nykaa stock rises

“If a company’s operating cash flows are drained by an increase in interest rates, and its free cash flows are close to zero, that company should be avoided at this time. And Nykaa falls within this category for us, regardless of what the stock price does today or tomorrow “Added he. WealthMills Securities’ equities strategist, Kranthi Bathini, stated, “The stock soared as a result of high volume. In terms of prices, we’re seeing some attempts at bottom-fishing.”

Nykaa shares were listed at a premium of 79% to the issue price, indicating that the online beauty retailer had a successful IPO. The firm went public on the BSE at Rs 2,001 per share, up from the IPO issue price of Rs 1,125. After a phenomenal debut on the BSE and NSE, Nykaa’s market capitalization surpassed Rs 1 lakh crore. 

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