For all those who are investing in IFRC, today is your lucky day. The global market has shown a lot of bearishness in the past few days and understandably enough, losses have trailed investors. Despite the weakness, Indian Railway Finance Corpoaration has charged forward in true bullish fashion and attracted considerable interest.
It opened on a lucky upside, even hit an intraday high of 44.65 apiece on NSE and among the Dalal Street traders, considerable excited chatter and a sigh of relief, for they would no doubt have been tired reading about the weak market news since quite a few days all the time. Naturally questions have followed on this meteoric rise and to all cynics and naysayers, no the answer is not luck.
The answer is purely technical, as it has been uncovered that the Indian Railways has released tenders worth 25000 crores to acquire 60000 carriages. This purchase lands in the July- September quarter for this year. RVNL, Ircon International and other titans are going to be profited massively for these companies play the supplier role to the Railways since long. Owing to all the worthwhile buzz with this latest banger of a news headline fresh off the press, a lot of bulk buying has occurred for these shares, which has driven up the price of these shares. To explain to layman readers, basically whenever any company gets a high amount of publicity, it drives up the prices for as long as the publicity remains fresh.
Past month following, the IFRC shares have gone up 30 percent, from 32.75 to 44.65 which illustrates very lucidly what wonders publicity can do.
That will be the last word for now, let us see where this train of thought goes.