Market cap

After reaching a market cap of Rs1 trillion, IRCTC is subject to an M&O ban on NSE today. Should you buy?


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After reaching the market capitalization (m-cap) of Rs 1,000 billion on Tuesday, the Indian Railway Catering and Tourism Corporation Ltd (IRCTC) was included among nine shares / securities subject to the ban on futures and options (F&O) for trade through the National Stock Exchange (NSE) on Wednesday, October 20, 2021.

According to NSE, IRCTC was banned in the M&O segment because it exceeded 95 percent of the market wide position limit (MWPL), Mint reported.

Meanwhile, IRCTC shares continued to plunge as the stock fell more than 15% to Rs 4,610 per share in today’s first trading session.

Should Investors Buy? Here’s what the analysts are saying:

Avinash Gorakshkar, Head of Research at Profitmart Securities

IRCTC shares have skyrocketed over the past month, so profit taking was eagerly awaited. But, it won’t go down much from now on, as the majority stake in the company is owned by the Government of India (GoI). But that doesn’t mean you have to buy this low. In my opinion, the market is likely to remain weak over the next few trading sessions and therefore IRCTC shares may follow the flow of the market. The stock is expected to remain in a range until its second quarter FY22 results are announced.

Sumeet Bagadia, Executive Director at Choice Broking

IRCTC stocks look weak on the chart and further over-the-counter buys should be avoided. Indian Railways PSU stock meets a significant hurdle at levels of Rs 6000 to Rs 6100 and enjoys strong support at levels of Rs 5000 to Rs 5100 per share.

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