Paytm shares, listed under One 97 Communications Ltd, witnessed a sharp 9% decline on January 24, 2025, amid reports of an Enforcement Directorate (ED) investigation into a major cryptocurrency scam. The scam allegedly involves eight payment gateways, including Paytm, RazorPay, PayU, and Easebuzz, with Rs 2,200 crore raised across 20 states. As part of the probe, the ED has frozen Rs 500 crore in connection with the scam.
This significant development has spooked investors, causing Paytm’s stock to tumble to Rs 773.90 in early trading, down from the previous close of Rs 848.95 on the Bombay Stock Exchange (BSE).
What Is the Market Impact of the ED Probe?
The sharp drop in Paytm shares has had a noticeable impact on its market performance:
- Market Capitalization: The market cap of Paytm fell to Rs 52,749 crore on BSE.
- Trading Volume: Approximately 3.89 lakh shares changed hands, amounting to a turnover of Rs 31.70 crore.
The stock, which had shown a 10% rise over the past year, has now lost 16% in 2025, eroding investor confidence.
What Are the Technical Insights on Paytm Stock?
From a technical analysis perspective, Paytm shares present a mixed picture:
- Relative Strength Index (RSI): The RSI stands at 40.9, suggesting the stock is neither overbought nor oversold.
- Moving Averages:
- Higher than: 100-day, 150-day, and 200-day moving averages.
- Lower than: 5-day, 10-day, 20-day, 30-day, and 50-day moving averages.
This indicates a short-term bearish trend while maintaining strength in the longer term.
How Does the Crypto Scam Affect Paytm?
The ED probe has linked the cryptocurrency scam to 10 Chinese nationals and frozen Rs 500 crore. Payment gateways, including Paytm, reportedly facilitated transactions amounting to Rs 2,200 crore, raising concerns about compliance and due diligence.
In response to the news, BSE sought clarification from Paytm, quoting a report published on Moneycontrol. The company is yet to release a detailed statement addressing the allegations.
Should Investors Be Concerned?
Despite the immediate sell-off, analysts suggest that Paytm’s long-term prospects depend on how the investigation unfolds and whether the company takes steps to strengthen its compliance processes. The stock’s beta of 0.9, indicating low volatility, may provide some stability in the long term.
However, the ongoing investigation could keep investor sentiment subdued in the short term, especially if further regulatory actions are taken.
Key Paytm Stock Metrics
| Metric | Value |
|---|---|
| Current Price (BSE) | Rs 773.90 |
| Previous Close (BSE) | Rs 848.95 |
| Market Cap | Rs 52,749 crore |
| Trading Volume | 3.89 lakh shares |
| Turnover | Rs 31.70 crore |
| RSI | 40.9 (Neutral Territory) |
| Year-to-Date Performance | -16% |
| Moving Averages | Above 100, 150, 200-day; Below 5, 10, 20-day |
FAQs
Why did Paytm shares drop 9% today?
Paytm shares fell due to an ED probe into a Rs 2,200 crore cryptocurrency scam involving multiple payment gateways, including Paytm.
What is the current status of the ED investigation?
The ED has frozen Rs 500 crore in connection with the scam, which is reportedly linked to 10 Chinese nationals and payment gateways operating across 20 states.
How has Paytm performed in 2025?
Paytm shares have lost 16% in 2025 despite a 10% rise over the past year.
What does the technical analysis indicate about Paytm?
The stock’s RSI of 40.9 indicates it’s in neutral territory. It trades below short-term moving averages but above long-term ones, signaling a short-term bearish trend.
How much market capitalization did Paytm lose today?
Paytm’s market cap fell to Rs 52,749 crore after the 9% drop.
Is Paytm stock volatile?
With a beta of 0.9, Paytm stock exhibits low volatility, making it relatively stable compared to the broader market.
Should investors worry about the ED probe?
The ED investigation may dampen short-term investor sentiment, but Paytm’s long-term prospects depend on its ability to address compliance concerns and navigate regulatory challenges.
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