Paytm plunges on RBI crackdown. Should retail investors take a punt on the stock?

Paytm plunges on RBI crackdown. Should retail investors take a punt on the stock?


Vijay Shekhar Sharma, founder and CEO, Paytm.

Synopsis

As Paytm crashes more than 40%, most brokerages have turned bearish on the stock. However, there are exceptions. Morgan Stanley has bought 5 million shares of Paytm. Besides, retail investors are making a beeline for the stock in anticipation of an upside. ET Prime analyses the 200-day moving average to ascertain its chances of recovery. Here’s what we found.

Paytm karo, ya naa karo! After a more than 40% crash in the stock price, it is natural to see broking firms rushing to downgrade Paytm. The shares plummeted after the Reserve Bank of India (RBI) directed Paytm Payments Bank (PPBL) to stop deposits or credit transactions and top-ups in any customer account post February 29, 2024. Brokerages feel the reputational damage on Paytm will be difficult to manage and revoking RBI measures will not be

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Author: Shirley