The stock of One97 Communications, the parent company of Paytm, saw a nearly 5% increase in early trading on Tuesday, following a decline over two consecutive sessions.

At 10 a.

m.

, Paytm's stock was listed on the Bombay Stock Exchange (BSE) at Rs 1,425.

15, marking a 4.

77% rise.

Concurrently, on the National Stock Exchange (NSE), the shares experienced a 4.

90% increase.

Although Paytm's stock has shown early gains, it's uncertain if these will be sustained given the current volatility of the overall stock market.

Due to this volatility, aggressive market activity for Paytm is not anticipated.

On Monday, the company faced criticism over the high valuation set for its initial public offering (IPO).

Despite a recovery later in the day, the stock closed more than 12% down.

Consequently, the company's market capitalization dropped below Rs 1 lakh crore, resulting in significant paper losses for investors.

In fact, Paytm's disappointing market debut last week led to an erosion of investor wealth amounting to Rs 38,000 crore.

The company's stock valuation was questioned after it ended its first trading session.

Paytm had initially priced its shares at Rs 2,150 each, a rate higher than most of its listed counterparts.

Even after a sharp decline on the debut day, analysts believed Paytm's shares