Paytm Shares Cross Rs 1,000 For First Time In Six Months MSCI Buzz, Q1 Profit Hopes

The share price of Paytm's parent firm One97 Communications surges as much as 3 per cent in trade on Wednesday, July 16 to hit Rs 1,014 apiece, surpassing the Rs 1k mark for the first time in last six months.

The rally in this fintech major's stock pirce was fueled by reports of it becomming part of MSCI Standard Index, which is used as benchmarks for global stock funds and are frequently reviewed and rebalanced.

The rally in Wednesday's trading session marks a consecutive surge in stock indicating an overall increase of 9 per cent in July.

The stock was last seen hovering around the Rs 1,000 range in early January, but failed to sustain those levels and underwent a correction that lasted for two months before regaining momentum in early March, with the stock ending the following four months in green.

Reportedly, there is a high probability that Paytm may be upgraded from the MSCI Smallcap Index to the Standard Index in the upcoming MSCI rebalancing in August.

The stock could see inflows worth Y212 million following the index adjustments, according to media reports. The MSCI announcement is expected on August 8, with changes taking effect from August 26.

After hitting an all-time low of Rs 310 in May 2024, Paytm has staged a strong recovery, rallying 230 per cent to end the year at Rs 1,017, emerging as one of the best turnaround stocks of the year.

This sharp rebound is largely attributed to the company’s improving performance across multiple business segments, which has revived investor sentiment and boosted confidence in its long-term growth trajectory.

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Mutual funds boost stake in June quarter

Mutual funds have also shown growing confidence in the company’s growth prospects. According to the latest shareholding data for Q1FY26, domestic mutual funds collectively held a 13.86 per cent stake in Paytm, up from 13.11 per cent in the March quarter.

Among the notable domestic investors are Mirae Asset Mutual Fund, Motilal Oswal Mutual Fund, Nippon Mutual Fund, and Bandhan Mutual Fund.

While mutual funds expanded their stake in the company, both FIIs and retail investors trimmed their holdings. FII ownership declined to 54.9 per cent from 55.4 per cent in the March quarter, while retail investors reduced their stake by 1.3 per cent QoQ to 29.3 per cent.