India’s new-age technology stocks showed mixed movement this week as investors shifted focus from potential to profits. Rising crude prices, global geopolitical tensions and heavy foreign selling kept broader markets muted. Meanwhile, startups saw larger funding rounds for mature firms and regulators tightened IPO rules for tech companies.
Swiggy shares slide on foreign ownership plan
Swiggy shares fell over 9% during the week to close at ₹251.40, nearing their record low. The decline followed the company’s proposal to cut permitted foreign ownership from 100% to 49.5% to qualify as an Indian Owned and Controlled Company (IOCC).
Gaining IOCC status would allow Instamart, Swiggy’s quick-commerce arm, to buy inventory directly from suppliers and recognise full product sales as revenue. Investors fear the move could cost Swiggy inclusion in global indices that require higher foreign shareholding.
Analysts estimate potential passive fund outflows of roughly $340 million if Swiggy leaves the MSCI Standard Index and another $120 million if removed from FTSE, totalling nearly $460 million of selling pressure. Elevated put-option activity signalled bearish sentiment, and some brokers downgraded the stock over profitability concerns.
Instamart remains a key worry. It posted a loss of ₹736 crore in Q4 FY26. Although the loss narrowed slightly from the previous quarter, doubts persist about meeting a breakeven target by Q3 FY27.
BlueStone posts strong growth; shares hit record high
Jewellery retailer BlueStone surged nearly 35% in two sessions to a record ₹823.20 after robust quarterly results. Standalone revenue for Q1 FY27 rose about 49% year-on-year to ₹733 crore, and standalone net profit turned positive at ₹14 crore versus a ₹21 crore loss a year earlier.
Standalone EBITDA climbed to ₹54.8 crore with a 7.5% margin, despite higher customs duty on gold. Same-store sales grew 39%, prompting the company to plan a ₹400–500 crore expansion to open about 80 new stores, chiefly in Tier II and Tier III cities. Some market participants, however, say much of the near-term upside is already priced in.
Sector outlook
The contrasting results underline a market shift toward companies with clearer paths to profit. Global factors — higher Brent crude above $100 a barrel, rising US Treasury yields and weakness in global tech stocks — weighed on sentiment. Domestic institutional buying helped limit losses.
Startups raised $7.2 billion in H1 2026, reflecting larger checks into fewer, mature firms. SEBI’s stricter rules for post-April 2025 tech IPOs — audited KPIs, clearer use-of-proceeds and stronger governance disclosures — aim to boost transparency and investor confidence ahead of more listings.
