IRCTC share price: After climbing to 52-week high in October 2021, shares of Indian Railway Catering and Tourism Corporation (IRCTC) have been falling continuously.
In last 7 months, IRCTC share price has tumbled from its 52-week high of ₹1,279.26 apiece on NSE to ₹674.95 today, logging around 47 per cent dip in this period.
According to market experts, the stock is under pressure due to fear of next wave of Covid as China has imposed lockdown after sharp rise in new cases.
Apart from this, rising energy prices have also added salt to the wounds of IRCTC as costing of their trains’ operation is expected to hit its margins in upcoming quarter(s).
Speaking on the reasons for IRCTC share price fall, Ravi Singhal, Vice Chairman at GCL Securities said, “IRCTC shares are falling on fear of next Covid-19 wave.
Stock investors are negative on IRCTC business in upcoming quarters as they feel that rising Covid cases in China is a cue for India as the pandemic has proliferated from the Mandarin nation to the whole world.
Apart from this, rising energy prices have also fueled operational cost of trains and IRCTC may have to bear this burn in IRCTC train operations. So, market is expecting muted quarterly numbers from the Indian Railways’ PSU.”
Sharing major levels for IRCTC shares, Sumeet Bagadia, Executive Director at Choice Broking said, “IRCTC shares are looking weak on chart pattern and it may further go down below its recent panic low of ₹645 apiece levels. It is expected to go up to ₹600 apiece levels.”
On buying levels for IRCTC shares, Ravi Singhal of GCL Securities said, “Fresh buying in IRCTC shares is not recommended at current levels as reasons for fall in IRCTC stocks are expected to persist in near term.
Those who have this stock in their portfolio, can hold IRCTC stocks with stop loss at ₹588 and those who want to enter and take fresh position can start accumulating the stock from ₹650 levels.”