Business
When a Zomato share is priced lower than a kilo of tomatoes
The joke in the stock markets is tomatoes are more expensive than Zomato. Zomato trades at Rs 62.05 down from a peak of Rs 169.10.
Share prices of tech startups such as Zomato, Nykaa and Paytm have caused huge wealth destruction for investors.
Ravi Singh, Vice President and head of Research Share India said following the market slump due to the geopolitical crisis and interest rate hikes in developed economies, share prices of tech startups such as Zomato, Paytm and Nykaa have failed, erasing a large part of investors wealth.
“Most of these new-age tech IPOs saw healthy oversubscriptions but the unjustifiable high valuations, complicated business models and controversies took the toll further”, Singh added.
The rising interest rate, liquidity tightening by key central banks and rising bond yields hurt the valuations of these stocks. Another factor which makes these stocks more vulnerable are as these new-age tech companies are essentially “classic growth” stocks, the investor preference is shifting to value stocks amid the high probability of gradual rate hikes, persisting inflation worries and geopolitical crises, Singh said.
Ravi Singhal, Vice Chairman, GCL Securities Limited said all IT stocks in the US market have been beaten down, and we believe that as interest rates rise, it will be negative for such companies that do not generate enough cash in the long run. looks good, but there is still some pain.
Shivam Bajaj, Founder & CEO, Avener Capital said alarmingly for the Startup ecosystem, private equity and venture capital investments declined by 25 per cent-30 per cent M-o-M in April 2022.
“Additionally, glorified startups including Nykaa, Zomato and Paytm continue to erode investor wealth by trading at approximately less than 50 per cent of their listing prices”, Bajaj said.
With more than 6000 employees laid off in 2022 YTD by Indian Startups, capital providers might prefer delaying their plans to deploy their dry powder in expectations of future turnarounds in the industry, he said.
According Prime Database, the largest IPO in 2021-22 was from One 97 Communications (Paytm) for Rs 18,300 crore. This was followed by Zomato (Rs 9,375 crore), Star Health (Rs 6,019 crore), PB Fintech (Policybazaar) (Rs 5,710 crore), Sona BLW (Rs 5,550 crore) and FSN E-Commerce (Nykaa) (Rs 5,350 crore). Four out of the top 6 IPOs were from new age technology companies (NATCs) which together raised Rs 38,734 crore.
In a recent development, as per reports, Jack Ma-led Alibaba and Ant Financials have exited Paytm E-commerce Pvt Ltd, the parent entity of Paytm Mall.
Paytm E-commerce bought back the entire stake of Alibaba (28.34 per cent) and Antfin (Netherlands) Holding (14.98 per ent), a total of 43.32 per cent, for Rs 42 crore.
This values the company at Rs 100 crore, plunging from $3 billion, the valuation in its last fundraising in 2020.
Business
After Meta, Google to report child sexual abuse content directly to Indian authorities

New Delhi, Sep 22: After Meta, US tech giant Google will report content flagged as child sexual abuse material (CSAM) directly to the Indian authorities, contrary to the long‑standing global practice of routing such reports through a US non‑profit organisation.
Meta announced a similar change last week after Indian officials pressed major tech firms in recent weeks to speed up reporting, citing concerns that the existing system delays reports considerably.
Google “invests significantly to detect, deter, remove, and report child sexual abuse material,” a company spokesperson said, describing the change as part of the company’s “ongoing discussions with the government of India.”
Meta and Alphabet’s Google used to send tips to the US‑based National Center for Missing & Exploited Children (NCMEC) which then relayed them to local law enforcement, according to reports.
Such a practice could cause dangerous delays in cases where children may be at immediate risk as reports pass through an intermediary before reaching domestic police who can act on the ground.
The US nonprofit that erstwhile used to receive such reports first hand runs CyberTipline portal that recorded nearly 21.3 million reports from around the world of suspected child sexual exploitation in 2025.
India remains the largest market by user count for both Meta’s Facebook and Google’s YouTube. Meta’s shift in policy comes after weeks of friction with New Delhi, including an apology last month by CEO Mark Zuckerberg over the spread of child sexual abuse material on the company’s platforms.
Technology and law enforcement officials in the United States, the European Union and elsewhere have urged platforms to bolster detection and reporting. However, most countries continue to route reports through the US nonprofit as the primary international clearing house.
The Central government, in July, directed Google to take down multiple Firebase web development accounts that were impersonating the websites and mobile apps of major public- and private-sector banks and other financial institutions.
Business
Sensex, Nifty open marginally higher over crude price correction

Mumbai, Sep 22: The Indian equity markets inched up slightly on Tuesday morning, tracking positive global cues and correction in global crude prices.
As of 9.20 am, Sensex added 64 points, or 0.10 per cent, to reach 74,914 and Nifty gained 34 points, or 0.15 per cent, to reach 23,449.
Main broad-cap indices outperformed gains of the benchmark indices, as the Nifty Midcap 100 added 0.33 per cent, and the Nifty Smallcap 100 advanced 0.4 per cent.
Sectoral indices on NSE traded in green except Nifty IT down 1.09 per cent and FMCG down 0.01 per cent. Nifty realty was the top gainer, up 1 per cent, followed by chemicals, up 0.64 per cent.
“With precious metals stabilising and fixed income returns becoming attractive, investors can now opt for a multi-asset strategy,” an analyst said.
WTI crude trading in the $92–$93-a-barrel range and a stronger rupee provided additional comfort on the broader macroeconomic front.
Global risk sentiment has improved, with US equities posting strong gains and Asian markets largely positive, while softer crude prices have eased some pressure on oil-importing economies.
In the previous session, Nifty surged 0.29 per cent and closed at 23,414. Immediate support is placed at 23,250–23,300, while resistance is seen at 23,550–23,600.
In the previous session, Bank Nifty closed at 56,470, up 0.20 per cent. Immediate support is placed at 56,000–56,300, while resistance is seen at 56,800–57,000, said analysts.
In Asian markets, China’s Shanghai index gained 0.22 per cent, and Shenzhen added 0.62 per cent, Japan’s Nikkei added 1.38 per cent, and Hong Kong’s Hang Seng Index added 0.41 per cent. South Korea’s Kospi added 1.89 per cent.
The US markets ended in green overnight as Nasdaq gained 2.26 per cent. The S&P 500 added 1.49 per cent, and the Dow Jones added 0.71 per cent.
On September 21, foreign institutional investors (FIIs) net sold equities worth Rs 576 crore, while domestic institutional investors (DIIs) bought equities worth Rs 2,800 crore.
Business
FM Sitharaman meets JPMorgan CEO Jamie Dimon in Mumbai

Mumbai, Sep 21: Finance Minister Nirmala Sitharaman on Monday met Jamie Dimon, Chairman and Chief Executive Officer of JPMorgan Chase & Co., during the 11th edition of the JPMorgan India Investor Conference in Mumbai.
According to the Finance Ministry, Dimon interacted with the finance minister on the sidelines of the conference, which brought together investors, policymakers and corporate leaders to discuss India’s economic outlook and investment opportunities.
FM Sitharaman also addressed participants at the event and took part in a fireside chat with Sajjid Chinoy, Head of Asia Economics at JPMorgan.
“Jamie Dimon, Chairman and CEO of JPMorgan Chase & Co., interacts with FM Sitharaman during the J.P. Morgan India Investor Conference in Mumbai, Maharashtra,” the finance minister posted on social media platform X.
” FM Sitharaman addressed the gathering and participated in a fireside chat with Sajjid Chinoy, Head of Asia Economics at JPMorgan, during the 11th edition of the J.P. Morgan India Investor Conference in Mumbai, Maharashtra,” the finance minister added.
The meeting comes as JPMorgan said in a recent report that a combination of tax reforms and regulatory measures had enhanced the attractiveness of equities for domestic investors, helping sustain robust inflows despite relatively muted market returns over the past two years.
The brokerage noted that changes in the taxation framework for long-term capital gains, debt mutual funds and certain insurance products have improved the relative appeal of equities.
It said these measures, alongside rising participation through systematic investment plans (SIPs), are supporting a continued shift of household savings toward financial assets.
According to JPMorgan, domestic investors have increasingly emerged as a stabilising force for Indian markets, offsetting bouts of volatility triggered by foreign portfolio investor outflows and global uncertainties.
The report highlighted that retail participation has remained resilient even during periods of modest benchmark returns, signalling a structural change in investment behaviour.
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