The stock price of the Indian Railway Catering and Tourism Corporation (IRCTC) experienced a significant upswing shortly after the opening of the stock market on Tuesday. Despite an initial dip in early morning trading, IRCTC shares garnered strong buying interest at around ₹680 per share. The stock quickly reached an intraday high of ₹707.40 per share on the NSE, marking an intraday gain of approximately 4% during Tuesday’s trading sessions.
When asked about the reason behind the sharp increase in IRCTC shares, Avinash Gorakshkar, Head of Research at Profitmart Securities, commented, “Last week, IRCTC announced to Indian exchanges that it would waive the convenience fee for air tickets booked through its app or website. This news has been well-received by market enthusiasts, who anticipate a surge in air ticket bookings as a result of this announcement.”
Regarding the future outlook for IRCTC share prices, Sumeet Bagadia, Executive Director at Choice Broking, recommended shareholders to continue holding the stock. He stated, “IRCTC shares are exhibiting a sideways to positive trend in their chart pattern. The stock may become highly bullish once it surpasses the current resistance level at ₹725. Upon breaking this barrier, we may witness IRCTC shares reaching around ₹750 per share in the near term.” However, Bagadia advised maintaining a strict stop-loss level at ₹675 per share while aiming for the ₹750 per share target.
The surge in buying interest for IRCTC shares follows the recent disclosure made by the Indian Railways’ public sector undertaking (PSU). In this disclosure, IRCTC informed Indian stock market authorities about its special offer for air passengers. Under this latest offer, individuals can book air tickets through the IRCTC app or website without incurring any convenience fees.
IRCTC formally communicated this offer to the Indian stock market, stating, “In accordance with Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, please find attached the Press Release on ‘Book your Air Tickets with IRCTC at Zero convenience fees and also avail attractive discounts on card transactions’.”
