Why Paytm Shares Hit Upper Circuit Again

  • Benzinga India
  • Stock Market News
Why Paytm Shares Hit Upper Circuit Again

Benzinga - Paytm (NS: PAYT )‘s share price continued to jump on Monday going up 5% to hit the upper circuit at ₹428.10

What Happened: The shares of the payments giant are upbeat today as RBI advised NPCI to examine Paytm's TPAP application. The move is seen as a positive for the troubled company as if approved this will enable a seamless transition & continued UPI services for customers.

The move also caught the attention of brokerages. Morgan Stanley (NYSE: MS ) maintained its “equal weight” rating for the stock with a price target of ₹555. The brokerage said that the move of the regulator was a positive development and it will be closely watching the NPCI’s response. The analysts added that approval from NPCI will ensure quick migration of customers and less disruption.

Jefferies also said that the move was good for Paytm as the clarity of UPI handles reduces regulatory risks. The analysts added that this removes one of the two key regulatory overhangs. The global research firm moved the Vijay Shekhar Sharma-led company to the not-rated category last week.

Price Action: Paytm’s share price was up 4.18% to trade at ₹424.80 as the markets opened on Monday.

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