Finally, The Indian Railways (Ministry of Railways) has taken back its decision of 50% sharing of Convenience Fee on IRCTC.
By this highly debatable decision, the ministry had asked the IRCTC to share 50% of its revenue comes as a convenience fee from the website booking of tickets. It is worth to be noted that IRCTC has monopoly over the the online ticket booking and catering services in Railways.
This decision was to come into effect from 01st of November 2021. A wave of fear spread among the investors of IRCTC by this hostile decision resulting into the dip of 48% in share price of this company. In the intraday trade, the stock touched the low of Rs. 656 on 29/10/2021. However, as soon as the news of withdrawal of decision broke, the price of the stock recovered sharply from its lowest level of 656.25 and closed at 845.7.
Good and aggressive buying may be seen in this stock on Monday. So a close eye should be kept on IRCTC.
Disclaimer- The above article is not a recommendation. This is just for informative purpose.