If there is one public sector entity that has given excessive returns to investors in the Indian stock market it is IRCTC. Shares of IRCTC, which had been growing at a rocket pace for the past one year, plunged to an all-time low of Rs 1,400 an hour today, shocking investors.
Shares of IRCTC, which had registered strong growth till 2.45 pm today, fell 15 per cent as investors sold more shares for profit.
IRCTC Company Shares
Shares of IRCTC, the ticket booking and internet services company of the Indian Railways, India’s largest commercial passenger and freight platform, fell sharply today, shocking investors.
Historical peak
Shares of IRCTC traded at a historic high of Rs 6,369.30 this morning, just as the Sensex touched a historic high of 62,245 points in today’s trade. But unexpectedly, at the end of today’s trading, large investors have been selling IRCTC shares.
Development of IRCTC
IRCTC shares have recorded the largest growth in the last 5 days at 30 per cent, 70 per cent in one month and 333 per cent in 2024. In fact, IRCTC shares doubled in the July – September quarter alone.
Monopoly
The most important reason for this tremendous growth is that IRCTC has become a monopoly in the ticket booking service in the Indian Railways sector which has reached a point where no one can shake it. The company’s quarterly results have made a big difference this time around.
1 lakh crore
Shares of IRCTC traded at a record high of Rs 6,369.30 in this morning’s trade, surpassing the total market value of IRCTC by over Rs 1 lakh crore.
Decline
However, IRCTC shares fell to Rs 4,996.05 from Rs 6,369.30 at the close of trading. As a result, the total market value of IRCTC fell from Rs 1 lakh crore to Rs 85,750 crore.
This is the reason ..
The only reason for today’s decline in IRCTC stocks was the profit-seeking mood of investors, who also sold IRCTC stocks out of fear that investors would not lose profits as the Sensex fell from 62,245 points.
Key Levels
It is in the midst of so many speculations that the price of this stock is declining. Meanwhile, if the company’s share price falls further, 4,200 and 3800 will be the next major supports. Experts have estimated the key resistance levels at 4,800 and 5,200 if the same comes back.
Can F&O be banned?
IRCTC’s open interest rate has reached 90%. If this ratio exceeds 95%, F&O may be suspended. These stocks may return to F&O trading when the barrier falls back below 80%. However there are fears in the market as to what to do if this ratio is in the upcoming F&O Sky.
The medium term may decrease
Meanwhile, the price of this stock is seen as technically declining slightly. But experts say that even if the medium term decreases, it may increase in the long run, so it can be bought when it decreases.
