Paytm shares: The parent of the Paytm brand, One97 Communications, saw a heavy sell-off during Thursday’s trading. Paytm share price today opened at ₹1671 apiece on the NSE, and it touched an intraday low of ₹1,558.80 within a few minutes of the Opening Bell. However, the stock saw some value buying and pared early-morning losses. Currently, Paytm’s share price is down by 5% at ₹1644.
The sell-off was triggered after a Reuters report, citing anonymous regulatory officials, that India is considering delaying the rollout of a fee on large payments via its popular Unified Payments Interface platform by a few months.
According to stock market experts, Paytm share price is falling on the sentimental trigger only. There is no official announcement in this regard; hence, Paytm shareholders should wait for the government’s final announcement. They advised One97 Communications shareholders to hold Paytm shares, maintaining a stop-loss at ₹1550.
Paytm shares fall | UPI MDR deferred?
Highlighting the reason for the fall in One97 Communications share price today, Mahesh M Ojha said, “Paytm shares are falling due to the news reports about India mulling to delay the rollout of UPI MDR. This has gone down negatively for the fintech stock, and people are selling this stock on this sentimental buzz.”
Ojha advised Paytm shareholders to hold the scrip and wait for an official announcement from the government. He said that the stock has rallied following the declaration of the UPI MDR rollout, and hence any rebuttal from the government is expected to trigger a fresh rally in Paytm’s share price.
According to Reuters, a final decision on delaying the rollout has yet to be taken by the National Payments Corporation of India, but is expected in the coming days, one of the sources said.
A delay in implementation would allow payment firms to upgrade their systems without passing costs on to customers, while addressing issues retailers may face during the festive period, the sources said, requesting anonymity as the discussions are private.
Paytm share price target
Advising Paytm shareholders to hold the scrip, Sumeet Bagadia, Executive Director at Choice Broking, said, “Paytm shareholders are advised to hold the scrip as it is still looking positive on the technical chart and its current support placed at ₹1550 is expected to remain sacrosanct despite heavy sell-off.”
Bagadia said that Paytm’s share price may rebound from this support and advised existing Paytm shareholders to hold the scrip, maintaining a strict stop-loss at ₹1550.
Paytm share | Is this a stock to buy today?
On the suggestion to the fresh investors regarding Paytm shares, Sumeet Bagadia said, “Fresh investors can buy Paytm shares at the current market price for the near-term target of ₹1750 and ₹1850. However, they are advised to maintain a strict stop-loss at ₹1550 on a closing basis, while taking any fresh position in the counter.”
UPI MDR delay reports
Reuters has reported, citing an anonymous regulatory official, that India is considering delaying the rollout of a fee on large payments via its popular Unified Payments Interface platform by a few months.
India last month ended more than six years of zero-cost payments by announcing a 0.4% charge for merchants on transactions exceeding 2,000 rupees ($21), drawing opposition from retailers and a large broker.
UPI is used by over 500 million people to buy everything from roadside cups of tea to iPhones in Asia’s third-largest economy. Walmart’s PhonePe and Alphabet’s GooglePay had about 80% market share by value of UPI transactions in August.
The fee, set to take effect from October 15, would have coincided with India’s annual festive season, which runs from October through December and typically sees a surge in consumer spending.
Disclaimer: This story is for educational and informational purposes only. The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified financial experts before making any investment decisions.
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