Indian Railway Catering and Tourism Corporation (IRCTC) shares came under intense selling pressure after the stock exited the NSE's futures and options ban list on Monday. IRCTC shares fell as much as 14.32 per cent to hit an intraday low of Rs 3,960.05. The NSE places shares under the futures and options ban list when they cross 95 per cent of the market-wide position limit. As per the exchange rules, the shares under the futures and options ban list can only be sold and no fresh buy orders can be placed for such shares.
Meanwhile, Escorts, Indiabulls Housing Finance, Vodafone Idea, India Energy Exchange, Punjab National Bank and SAIL were added to the futures and options ban list of shares.
IRCTC shares have witnessed profit-booking post the sharp-run up witnessed in the first 18 days of the current month; the shares had rallied a whopping 68 per cent from the closing price of Rs 3,797 registered on September 30 to hit an all-time high of Rs 6,393 on October 19, analysts said.
IRCTC shares have corrected 38 per cent from record highs, in three out of last five trading sessions.
IRCTC shares have been on investors' radar after the company's board approved stock split in the ratio of 1:5 in August. IRCTC's board decided to split the stock in order to help enhance liquidity in the capital market, widen shareholder base and make the shares affordable to small investors.
"IRCTC is one particular company which has a virtual monopoly for Indian Railways. The amount of services it caters to is huge and there is no competition. The stock can thus achieve higher levels. There will be corrections, but smart long term investors can buy into all dips," Gaurang Shah of Geojit Financial Services told NDTV.
As of 12:55 pm, IRCTC shares traded 10.72 per cent lower at Rs 4,126, massively underperforming the Sensex which was up 0.36 per cent.