Why Paytm shares increased 10% in early trading today is explained

Paytm’s stock increased by around ten percent on Wednesday, and in the last two days, it has increased by thirteen percent overall.

Paytm shares were up 8.98% to Rs 491.65 on the Bombay Stock Exchange (BSE) at roughly 10:20 am.

Following a meeting between Reserve Bank of India (RBI) officials and Finance Minister Nirmala Sitharaman, Paytm CEO and founder Vijay Shekhar Sharma discussed potential limits on Paytm Payments Bank Limited starting on March 1, the company’s shares saw a significant increase.

The stock hit a high of Rs 495.75 on the BSE, and over 21 lakh Paytm shares, or about 0.3% of all shares, have been exchanged thus far, valued at Rs 103 crore.

Paytm’s stock is still down almost 35% from its prior level of Rs 761, when the RBI issued tough restrictions, despite this latest increase.

The stock continued to get favorable ratings from brokerage company Bernstein, indicating that it was selling at very cheap prices. They anticipate that Paytm would adjust as needed to adhere to RBI regulations, which may soothe investors.

Another brokerage, UBS, said that in order to prevent interruptions, Paytm must move its users’ UPI handles to a different bank. They cautioned that if you don’t, people could stop using Paytm.

It should be mentioned that according to some media sources, the Enforcement Directorate (ED) may launch a formal probe on Paytm in response to worries expressed by the RBI.

Paytm has, however, formally refuted any such probe or rule breach. In the midst of the continuous crises, Paytm finds some relief from the stock market correction.

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