IRCTC share price: Indian Railway Catering and Tourism Corporation (IRCTC) shares have been decreasing steadily after reaching a 52-week high in October 2021. IRCTC’s stock price has dropped over 47% in the previous seven months, from a 52-week high of 1,279.26 per share on the NSE to 674.95 today.
According to market analysts, the stock is under pressure because to concerns about the next wave of Covid cases, since China has enforced a lockdown following a high increase in new instances. Apart from that, rising energy costs have added salt to IRCTC’s wounds, as the cost of operating their trains is projected to eat into their profits in the coming quarter (s).
Ravi Singhal, Vice Chairman of GCL Securities, explained the causes for the IRCTC stock price drop “Fears of the second Covid-19 wave are causing IRCTC stock to drop. Stock investors are bearish on the IRCTC company in the next quarters, believing that mounting Covid cases in China are a warning sign for India, since the epidemic has spread from China to the rest of the world.
Apart from that, rising energy prices have pushed up train operating costs, and IRCTC may have to bear the brunt of this expenditure. As a result, the market is anticipating subdued quarterly results from the Indian Railways PSU.”
Sumeet Bagadia, Executive Director at Choice Broking, shared important levels for IRCTC shares “IRCTC stock is showing signs of weakness on the chart, and it might go below its recent panic low of $645 per share. It is likely to rise to 600 per piece.”
Ravi Singhal of GCL Securities commented on IRCTC stock purchasing levels, saying, “At present levels, further buying in IRCTC shares is not suggested, since the causes for the company’s decline are projected to remain in the short term.
Those who already own this stock should keep it with a stop loss around 588, while those who wish to enter and create a new position can begin acquiring the stock at 650 levels.”