Swiggy share price: A roller coaster ride

"Swiggy shares listed at a premium of 18.97% on NSE, valuing the company at Rs 87,299 crore."
The much-anticipated Swiggy IPO finally hit the market on Tuesday, and it was a roller coaster ride for investors. The stock opened at Rs 464 on NSE, an 18.97% premium to the IPO price of Rs 390. However, it soon gave up most of its gains and closed the day at Rs 455.95 on BSE, a premium of just 5.68%.
So, what happened? Why did Swiggy's stock price fluctuate so much on its first day of trading? There are a few possible explanations.
First, the market may have been pricing in the recent weakness in the tech sector. Over the past few months, many tech stocks have lost value due to concerns about rising interest rates and a potential recession. This may have made investors hesitant to buy Swiggy shares at a premium.
Second, Swiggy is a loss-making company. In the fiscal year ended March 2022, the company reported a net loss of Rs 3,629 crore. This may have made some investors cautious about investing in the stock.
Third, Swiggy is facing increasing competition from rival food delivery companies such as Zomato and Uber Eats. This competition may put pressure on Swiggy's margins and make it difficult for the company to achieve profitability.
Despite these challenges, Swiggy is still a leading player in the Indian food delivery market. The company has a large customer base and a strong brand. If the company can execute on its plans and achieve profitability, its stock price could have significant upside potential.
However, investors should be aware of the risks involved in investing in Swiggy. The company is loss-making and faces increasing competition. If the company is unable to achieve profitability or if the tech sector continues to struggle, its stock price could decline.
"Only time will tell how Swiggy's stock price will perform in the long run. However, the company's strong brand and large customer base give it the potential to be a successful investment."