The impact of the cancellation of all passenger trains by the Indian lifeline of the Indian Railways by 31 March was seen on the shares of the railway undertaking IRCTC on Monday. Also, with the opening of the market in the first session of the week, the shares of the company fell by five per cent to Rs 903, after which the shares of the company started lower circuit. It is also notable that due to the cancellation of trains operations, all the food plazas, refreshment rooms, mass meals and other services of IRCTC had to be closed. This is sure to have a tremendous impact on the company's earnings and this is the reason why the company's shares saw a huge decline.
Along with this, let us tell you that in order to stop the spread of Covid virus, the Railways had announced the cancellation of all passenger trains from midnight of 22 March to midnight of 31 March. However, 9,000 freight trains will continue to operate. Along with this, it was necessary to cancel trains due to the presence of some railway passengers from the Coronavirus and a large number of migrants from the metros gathered at railway stations and trains to return to their home town.
IRCTC shares have fallen to half the price in the last 17 sessions. The shares of IRCTC were listed on the stock market a few months ago and the shares of the company were fiercely bought by investors. At the same time, the IPO brought by the company also received very good response. Indian Railways usually operates 13,500 passenger trains per day. Along with this, all types of rail services including suburban rail services have been cancelled till the end of this month.
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