2 hrs ago
Paytm Shares Fall on Reports of Possible UPI Fee Delay
Paytm's parent company shares dropped during Thursday trading.
This happened after a news report said India might delay a new fee on some UPI payments.
The report relied on unnamed officials, and no final decision had been announced.
The planned fee is 0.4% for merchants on payments above ₹2,000.
It was due to start on October 15.
Some experts said the share-price drop was mostly caused by the news and uncertainty.
They advised current shareholders to hold and watch for an official announcement.
One analyst also said new investors could consider buying, but set a stop-loss at ₹1,550.
These are analysts' views, not a government decision or a guarantee of share performance.
One97 Communications shares fell about 5% during Thursday trading after reports that India may delay a fee on some UPI payments.
The report cited anonymous regulatory sources; the National Payments Corporation of India had not made a final decision.
The proposed 0.4% merchant charge applies to transactions above ₹2,000 and was scheduled to begin October 15.
Analysts described the decline as sentiment-driven and advised existing shareholders to hold, with a ₹1,550 stop-loss.
One analyst said new investors could consider buying, with near-term targets of ₹1,750 and ₹1,850 and a ₹1,550 stop-loss.
- Who
- One97 Communications (Paytm's parent company), investors, and the National Payments Corporation of India.
- What
- One97 Communications shares fell about 5% amid reports that India may delay a planned fee on certain UPI payments.
- Where
- India's stock market and the country's Unified Payments Interface system.
- When
- Thursday trading; the proposed fee was scheduled to take effect on October 15.
- Why
- Investors reacted to a Reuters report, citing anonymous regulatory sources, that the fee rollout could be delayed.
Key facts
- Share move
- One97 Communications shares fell about 5% during Thursday trading.
- Reported development
- India was considering delaying the fee rollout by a few months, according to Reuters sources.
- Decision status
- The National Payments Corporation of India had not reached a final decision, according to the report.
- Proposed fee
- 0.4% for merchants on transactions exceeding ₹2,000.
- Scheduled start
- October 15.
- Analyst support and stop-loss
- ₹1,550.
- Suggested near-term targets
- ₹1,750 and ₹1,850, according to Sumeet Bagadia.
- UPI usage
- More than 500 million people use UPI, according to the article.
Quotes
Sumeet Bagadia
Executive Director at Choice Broking
“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.”
livemint.com
“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.”
livemint.com
Sources
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