IRCTC Stock Gains 24% in Three Days, Can the Rally Sustain?

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IRCTC Stock Gains 24% in Three Days, Can the Rally Sustain?
Credit: © Reuters.

By Aditya Raghunath

Investing.com -- IRCTC stock has roared back to life in the last three days. From May 2020 until December 3, IRCTC (NS: INIR ) stock was drifting around in the range of Rs 1,300 - Rs 1,400. After all, no one was traveling by train. However, since then, the stock has gained almost 24% since it closed at Rs 1,354 on December 2.

The rally is on the back of positive news on vaccine development and deployment. IRCTC bulls have reacted positively to the formal application of the Serum Institute of India to Drugs Controller General of India (DCGI) for emergency authorization for the Oxford COVID-19 vaccine in the country. US drugmaker Pfizer (NYSE: PFE ) has also sought approval to deploy its vaccine in India. The UK will rollout Pfizer’s vaccine in the country from Thursday, December 10.

The Indian government has said that it is in talks with state governments across the country to ensure that vaccine prices will be kept in check and that it will be available throughout the country.

COVID-19 cases seem to be slowing down in certain hotspots in the country. Active cases in Maharashtra, the state that has recorded the most number of cases and deaths, have dropped to 75,767, the lowest in 5 months according to news reports.

All of these pieces of news have improved prospects of travel in the country. If India is able to continue on this path, the IRCTC rally can definitely continue. It is still off its February peak of Rs 1,994 by almost 19%.

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