IRCTC dips by 30% in just two days after scaling an all-time high of Rs 6393.
Market cap tumbles from the celebrated Rs 1 trillion mark to Rs 0.74 trillion in mere two days.
Indian Railway Catering & Tourism Corporation Ltd (IRCTC) has been nothing but a dramatic story in recent times. A story that would put any investor in a state of dilemma whether to hold the scrip or exit. For many, it is the question of bargain hunting. On October 20, 2021, the stock hit a lower circuit twice.
Let's have a look at the turn of events in the stock over last month.
The bull rally
The stock has been a lottery ticket in the last month, trailing from October 18, 2021. The tremendous rally started from Rs 3707 to create a fresh 52-week high of Rs 6393 which generated a return of about 72% in just a month. The railways had witnessed a robust ticket booking in the September quarter. And as the IRCTC has a near-monopoly in the online ticket booking segment, the stock inflated to new skies.
Two day's story
The stock has dipped over 30% which shows a healthy correction after reaching a peak. The government announcement of the appointment of a regulator complemented the bearish sentiment. Above all, the stock was added to the F&O ban list by NSE as the stock had crossed the 95% market-wide position limit. According to the NSE, no fresh positions are allowed, only off-setting positions can be taken in the stock. As many speculators were long in October futures, the only option they have is to take a short position and hence a selling pressure can be seen in the stock.
It would be wise to wait for the volatility to die down before initiating a buy on the bargain. The fundamentals appear good in medium to long-term investments.
Share Market Today
Indices Name | Price | Price Change (% change) |
---|---|---|
S&P ASX 200 | 7555.70 | -82.4 (-1.08%) |
CAC 40 | 8022.41 | -0.85 (-0.01%) |
DAX | 17737.36 | -100.04 (-0.56%) |
Dow Jones | 37986.40 | 211.02 (0.56%) |
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Hang Seng | 16224.15 | -161.73 (-0.99%) |
US Tech Composite | 15287.01 | -319.49 (-2.05%) |
Nikkei 225 | 37068.28 | -1011.35 (-2.66%) |
S&P 500 | 4967.23 | -43.89 (-0.88%) |
Gift Nifty | 22203.50 | 188.5 (0.86%) |
Shanghai Composite | 3065.26 | -8.96 (-0.29%) |
Taiwan Weighted | 19527.12 | -774.08 (-3.81%) |
US 30 | 37973.70 | 209.7 (0.56%) |
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