Can Axis bank save sinking ship Paytm? or its uptick stocks just a short-term rally?
Shares of Paytm rose 5 per cent on Friday, rebounding after three days of fall amid the company coming under the regulatory scanner for various violations related to its payments bank business.
The shares of One97 Communications -- the parent company of Paytm -- also hit their upper circuit limit on the BSE and the NSE. Stocks of the crisis-hit fintech company jumped 5 per cent each to settle at Rs 341.50 and Rs 341.30 apiece on the BSE and the NSE even though it started on a weak note in early trade. In terms of volume trade, 1.91 crore equity shares were traded on the NSE, while 22.25 lakh shares were traded on the BSE during the day. The rise in Paytm shares came on a day when the benchmark Sensex surged 376.26 points to settle at 72,426.64 points while the Nifty advanced 129.95 points to close at 22,040.70 points.
After the Reserve Bank of India action against Paytm Payments Bank Ltd for certain violations, the Enforcement Directorate (ED) is looking into alleged violations by the entity. Paytm shares have been witnessing intense selling pressure this month after the RBI action. One97 Communications holds a 49 per cent stake in PPBL but classifies it as an associate of the company and not as a subsidiary.
