Groww's stock is experiencing a downturn, dropping over 8% for the second consecutive day. But what's causing this sudden shift after such a promising market debut?
On Thursday, November 20, 2025, shares of Groww, a leading online broking platform in India, continued their slide, trading at ₹156.04, down 8.14% at 9:30 am. This followed a 10% drop on Wednesday. This decline is particularly noteworthy because Groww had a strong market debut on November 12, listing at ₹112, which was about 12% above its initial public offering (IPO) price of ₹100.
Initially, the stock surged, reaching ₹193.80 on the National Stock Exchange (NSE) on Monday, a nearly 94% increase from the IPO price. However, this rapid ascent was followed by a correction as investors began to take profits.
The Profit-Taking Phase
The recent fall appears to be a typical profit-booking phase after an unusually rapid increase. Groww nearly doubled in just four days, rising from ₹100 to ₹194. Such sharp rises often lead to corrections as early investors cash out, even while overall market sentiment remains positive.
The Short Squeeze Effect
One significant factor contributing to the recent decline was a short squeeze on Tuesday. More than 30 lakh shares were directed to the auction window on the NSE because several traders had short-sold the stock, anticipating a price decrease. However, Groww's price continued to climb, leaving those traders unable to deliver the shares on the settlement date.
This squeeze highlighted how overheated the stock had become. Once the pressure subsided, a correction was expected.
Waiting for Financial Results
Another reason for the weakness is the anticipation of financial results. Groww is scheduled to announce its quarterly earnings on November 21. A significant portion of the early rally was fueled by excitement surrounding the fintech brand rather than concrete financial data. Some investors are now waiting for the actual results before making further investments.
Analyst Perspectives
- Shivani Nyati, Head of Wealth at Swastika Investmart, suggests that investors should book partial profits but retain some shares for the medium to long term, with a stop-loss at ₹80.
- Prashanth Tapse, Senior VP (Research) at Mehta Equities, views Groww as a long-term investment aligned with India's growing interest in equity markets. He recommends that investors hold for the long term, considering the company's structural strengths and growth potential, while acknowledging short-term risks. He sets a medium-term target of ₹125–130.
For those who didn't get an IPO allocation, Tapse advises monitoring the stock and buying on dips, as the company operates in a high-growth sector and may offer attractive entry points after the correction.
Disclaimer: The views, opinions, recommendations, and suggestions expressed by experts/brokerages in this article are their own and do not reflect the views of the India Today Group. It is advisable to consult a qualified broker or financial advisor before making any actual investment or trading choices.
So, what do you think? Is this a temporary setback, or a sign of a more significant correction? Share your thoughts in the comments below!
