Paytm stock hits 5% upper circuit for 3rd straight day; 5 factors driving the rally

livemint.com:

One 97 Communications, the parent company of Paytm, have recently shown significant upward movement, consistently hitting upper circuit limits in recent trading sessions. In today's trading session, the stock was locked at a 5% upper circuit limit at ₹376 apiece, marking the third consecutive day of a 5% rally.

Over these three days, the stock has gained a total of 16%. This resume in buying interest can be attributed to several factors, including the RBI extending the deadline, positive comments from management, and recent developments such as the Enforcement Directorate (ED) finding no violation under the Foreign Exchange Management Act, a deal with Axis Bank, and an outperform rating by Bernstein.

Also Read: Paytm, Nykaa among new-age tech stocks trading below IPO price, Zomato outlier The RBI on Friday (February 16) gave 15 days more till March 15, 2024, to Paytm Payments Bank (PPBL) to stop deposits, credit transactions or top-ups in any customer accounts, wallets, and FASTags, keeping in view the interest of customers, including merchants. As per a January 31 order from the central bank, PPBL was asked to stop further deposits, credit transactions, or top-ups in any customer accounts, prepaid instruments, wallets, FASTags, and National Common Mobility Cards, after February 29.

The RBI said this is being done keeping in view the interest of customers (including merchants) of PPBL, who may require a little more time to make alternative arrangements, and the larger public interest. Also Read: Paytm's loss is BharatPe, PhonePe, MobiKwik and other fintechs' gain Additionally, the company announced the shift of its nodal account to Axis Bank (by opening an Escrow Account).