Ajay Srivastava, CEO of Dimensions Corporate Finance Services, on Thursday, said that he is seeing money moving from old economy stocks to new-age companies.

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“Liquidity is draining off in the system from regular stocks or steel stocks, commodities everywhere, but these gig economy (new-age) stocks will remain strong because they have a strong ownership and a bias by this (young) segment of the population,” Srivastava said, in an interview to CNBC-TV18.

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Regarding Nykaa, he believes, post listing, investors are getting more confident about new-age businesses.

He said, “There is more confidence in the market and the fact remains that the people who are investing in this kind of segments (Nykaa, Zomato) are the younger lot of people and the ‘Robinhood’ investors; they are still going strong in those kinds of stocks, but they are not necessarily investing everywhere in the market.”

Also Read: Zomato jumps 6% in a weak market; management outlook boosts sentiment

According to him, the monopolistic element in Zomato makes up for the fact that the company is loss-making. “There is a ‘monopolistic’ element in Zomato, which gives it a lot of strength even though one would say that the losses could be a holding back factor, I tend to believe that Zomato offers, if they can get their model right, much better long-term value for the investors because they are literally in a monopoly situation in India; it’s very difficult to come. Amazon can fight back, Nykaa and others can fight back, but to fight back Zomato is going to be very difficult.”

For the entire interview, watch the video

(Edited by : Dipikka Ghosh)

First Published:Nov 11, 2021 12:00 PM IST