Both BSE and NSE have reduced Paytm's daily share trading limit from 20 percent to 10 percent, impacting the stock's potential price movements.
Market Impact
The reduction implies that trading in Paytm shares may be halted if a 10 percent upward or downward movement is reached, adding a new layer of volatility control.
Effective Date
The 10 percent daily trading limit for Paytm shares will come into effect starting Monday, February 5, 2024, as indicated by the circular.
Recent Share Price
Paytm's share price on Friday closed at Rs 487.20, witnessing a 20 percent intraday fall over two consecutive days, influenced by actions taken by the Reserve Bank of India (RBI).
RBI's Intervention
RBI's action against Paytm Payments Bank, making it the top-rated customer wallet after February 29, triggered a significant decline in Paytm's share price.
Wallet Functionality Assurance
Despite concerns, Paytm management assured users that Paytm Wallet will continue to function fully as Paytm Payments Bank collaborates with the wallet's operations.
Brokerage Revisions
In response to the turmoil, multiple brokerages have revised their Paytm share price targets and downgraded the stock, reflecting the uncertainty created by the RBI order.
Stock Downgrade
Paytm's stock experienced a downgrade by brokerages, contributing to the stock losing over $2 billion in market capitalization within two days after falling 20 percent from its maximum trading range on February 1 and 2.
Customer Concerns
The RBI order raised fears among customers that they might lose access to their Paytm wallet from February 29, although Paytm management has clarified otherwise.
Market Response
Paytm's stock market performance is now closely watched, with the recent events prompting a reassessment of the stock's potential and causing fluctuations in its trading range.