Shares of One 97 Communications, the parent company of Paytm, witnessed a sharp upward movement in today’s trading session, rising over 2% and trading in the range of INR 887 to INR 888. This bounce reflects a positive shift in investor sentiment following weeks of volatility that had dragged the stock lower earlier this month.
The recovery comes at a time when broader market indices have shown signs of consolidation, prompting select buying in beaten-down tech and fintech names. Paytm, often seen as a high-beta stock, has historically performed well during June, having delivered positive monthly returns in three of the past four years. Traders and analysts are closely watching to see if this seasonal trend continues in 2025.
The upward move is also being fueled by easing regulatory concerns. Recent fears around the imposition of Merchant Discount Rate (MDR) charges on UPI transactions were quelled after official clarification that no such policy is being introduced. In addition, a favorable interim ruling by the Supreme Court in a GST matter related to Paytm First Games, which involved a demand of INR 5,700 crore, has removed a significant legal overhang.
Despite the positive momentum, concerns around Paytm’s core financials persist. The company continues to report losses, and its return on equity remains negative. Market analysts believe that unless the company demonstrates a concrete path to profitability in the coming quarters, upside may be limited. Still, the 12-month consensus price target remains in the range of INR 940, leaving some room for near-term gains.
Today’s surge also reflects technical factors, as the stock had recently tested support levels near INR 850 after a steep correction earlier this month. With resistance seen around INR 1,000, short-term momentum traders may find opportunities if buying sustains and macro conditions remain favorable.
In summary, Paytm’s over 2% gain today marks a mix of technical recovery, easing regulatory uncertainty, and improving investor confidence. While the company has more to prove on the fundamentals front, today’s performance suggests that market participants are willing to re-engage, at least in the short term, as broader conditions stabilize.
