Shares of Indian Railways’ reservation and catering service arm Indian Railway Catering and Tourism Corporation Ltd (IRCTC) surged 5 per cent and were locked in upper circuit for second straight day at Rs 1,367.95. The surge in IRCTC share price came after the government which allowed running of 15 pairs of special trains connecting capital cities of various states to the national capital of Delhi. As reservations for the trains resumed on the IRCTC’s website on Monday, investors flocked to buy IRCTC shares.
There was huge demand for IRCTC shares as there were pending buy orders for 96,021 shares on the BSE.
The trains, which started plying on Tuesday, meant resumption of reservation services via IRCTC, for the first time since the nationwide lockdown had been imposed on March 24 amid the coronavirus pandemic.
IRCTC’s stock had plummeted to Rs 815.60 on March 25, a day after the lockdown was imposed. In contrast, the stock was priced at a 52-week high of 1,995, on February 25, just a month ahead of the lockdown.
Meanwhile, the broader market witnessed selloff on Tuesday as BSE Sensex was trading nearly 2 per cent lower, in afternoon trade. Banking and financial services stocks led the markets lower; however, pharmaceutical shares saw buying interest.