Shares of Indian Railway Catering and Tourism Corporation (IRCTC) came under heavy selling pressure on Monday after falling out of the National Stock Exchange’s futures and options list. Shares of IRCTC fell 14.32 per cent to Rs 3,960.05. The NSE places those stocks under a futures and options ban list that exceeds 95 percent of the market level level range. Under the terms of the exchange, futures and options can only sell positions for stocks under the block list and no new purchase orders can be placed for stocks under the block list.
Meanwhile, Escorts, Indiabulls Housing Finance, Vodafone Idea, India Energy Exchange, Punjab National Bank and Steel Authority of India SAIL have been added to the list of options for the future.
During the first 18 days of the current month, IRCTC shares were under selling pressure due to profit-booking, with a closing price of Rs. Increased by 68 per cent from 3,797. On October 19, analysts said the level was at an all-time high of Rs 6,393.
IRCTC shares have adjusted 38 percent in the last five trading sessions.
IRCTC shares have been on investor’s radar since the company’s board approved the split in August at a ratio of 1: 5. The board of IRCTC decided to split the shares in order to increase cash flow in the capital market, expand the shareholder base and help small investors convert stocks at affordable prices.
“IRCTC is a virtual monopoly company in Indian Railways. The amount of services it provides is huge and there is no competition so that the shares can reach higher levels.
As of 12:55 pm, IRCTC shares were down 10.72 per cent at Rs. The Sensex was up 0.36 per cent at 4,126.