The stock prices of Indian startups tumbled on Tuesday, with Honasa Consumer experiencing the largest drop at 6.55%, followed by Delhivery at 6.26%.
The Indian stock markets plunged into negative territory on Tuesday, erasing Monday’s gains due to trends from the 2024 general elections. This crash led to a significant decline in the prices of all publicly listed Indian startups. The BSE Sensex fell by 5.80% and the NSE 50 by 6.22% as election results indicated that the BJP may not secure a comfortable majority and will likely need to rely on allies to form the government for the third consecutive term. The prices of publicly listed Indian startups mirrored this downturn. While Monday saw most Indian startups’ stock prices rise, Tuesday’s scenario was starkly different.
All Indian startup stock prices declined on Tuesday, with Honasa Consumer and Delhivery seeing the steepest drops at 6.55% and 6.26%, respectively. The stock prices of all Indian startups ended in the red. On Monday, most startup stock prices had increased, except for Zomato and Nykaa. There is now uncertainty regarding the new government’s direction and its impact on the Indian startup ecosystem, which has received strong support from the current government. The Indian startup sector started the year positively, with companies like Go Digit and Awfis going public and achieving modest gains.
These developments follow a disappointing 2023 for Indian startups, with only one major listing, Honasa Consumer. This year has shown more promise, with companies like Ola Electric, Mobikwik, FirstCry, and Unicommerce planning to go public. The year 2021 saw a surge of public listings from Indian startups such as Zomato, PolicyBazaar, Nykaa, and Paytm, with Freshworks listing on the US stock markets. However, these companies have had varied stock price performances, notably Paytm, which has seen a decline since its listing.
