Are newly-listed companies losing their sheen? Read some interesting insights here!

Nifty opened the session at 16,592.25 and thereafter, witnessed profit booking. As a result, it made a low of 16,395.70. However, recovery was seen from the lower levels and Nifty ended the day, a tad below the 16,500 mark.   

The broader markets underperformed the frontline gauge with Nifty Midcap 100 and Smallcap 100 plunging 0.86 per cent & 1.85 per cent, respectively.   

On Monday, market breadth was extremely poor as decliners outnumbered advancers. Furthermore, the new listing of Nuvoco Vista Corporation turned out to be dismal as it listed below at a hefty discount to its offer price of Rs 570.   

Considering the weakening market breadth and dismal listing of Nuvoco Vista Corporation, we thought of checking the performance of all the newly-listed companies, which have listed in the year 2021. As per data, there are about 34 companies listed in 2021, excluding Nuvoco Vista Corporation.   

So, out of 34 stocks, only 5 stocks ended in the green on Monday. Moreover, only three stocks out of 34 stocks managed to outperform the frontline gauge.   

The top two performing stocks for the day from the list of newly-listed stocks are Indigo Paints and CarTrade Tech as the duo gained nearly 5.7 per cent and 4.86 per cent, respectively.   

What’s more disturbing to see is that as many as 8 stocks out of 34, ended with losses of more than 5 per cent, which was led by the Indian food delivery giant Zomato as it plunged nearly 8 per cent. Moreover, the stock of Zomato has witnessed five-bar breakdown along with spurt in volume. Volumes for the day were greater in the last five trading sessions.   

Another stock under selling pressure was Windlas Biotech. It lost more than 7.5 per cent and closed near its day’s low. The volume recorded in the stock was greater than its prior trading session. The stock is roughly trading 26 per cent down from its issue price of Rs 460.   

And as the saying goes, bad things happen in twos, same applies to the newly-listed companies as well. Nearly 23 stocks out of 34 have managed to close below their prior trading session’s low.   

Do let us know your investing experience in these newly-listed stocks in the comments section.