IRCTC shares have been on the radar of investors ever since the company’s board approved the stock split.
Shares of Indian Railway Catering and Tourism Corporation (IRCTC) on Monday came under heavy selling pressure after exiting the futures and options ban list of the NSE. IRCTC shares fell up to 14.32 per cent to hit an intraday low of Rs 3,960.05. NSE puts shares under the futures and options restriction list when they cross 95 per cent of the market-wide position limit. As per the rules of the exchange, only shares under the Futures and Options restriction list can be sold and no fresh buy orders can be placed for such shares.
Meanwhile, Escorts, Indiabulls Housing Finance, Vodafone Idea, India Energy Exchange, Punjab National Bank and SAIL were added to the futures and options ban list of shares.
After the rally in the first 18 days of the current month, IRCTC shares saw profit-booking. Analysts said the shares had hit an all-time high of Rs 6,393 on October 19, up 68 per cent from the close of Rs 3,797 registered on September 30.
IRCTC shares have shed 38 per cent from record highs in three of the last five trading sessions.
IRCTC shares have been on investors’ radar ever since the company’s board approved a 1:5 stock split in August. The board of IRCTC decided to split the stock to help increase liquidity in the capital market, broaden the shareholder base and make the shares affordable to small investors.
“IRCTC is a specialized company that has a virtual monopoly for Indian Railways. It’s volume of services is huge and there is no competition. Thus the stock can attain higher levels. There will be corrections, but smart long-term investors can buy all Dip in,” Gaurang Shah of Geojit Financial Services told NDTV.
As of 12:55 pm, IRCTC shares were trading 10.72 per cent lower at Rs 4,126, beating the Sensex’s 0.36 per cent gain.
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