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Severe Market Correction Drives RailTel Corp Shares Down by 20%

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8 months ago

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Severe Market Correction Drives Railtel Corp Shares Down By 20%

RailTel Corp shares witnessed a sharp decline of 20% in the latest trading session due to significant selling pressure in small-cap stocks, plunging to Rs 308.40 and hitting its lower price band amidst heavy trading volumes on BSE.

Analysts attribute the bearish trend in small and mid-cap stocks to Sebi‘s crackdown on over-speculation, ensuring market participant protection. The market saw a dip below recent consolidation levels, exacerbating investor pessimism.

VK Vijayakumar, from Geojit Financial Services, expressed concern over the sustained weakness expected in the broader market, notably in the small-cap sector, due to excessive valuations prompted by retail investor exuberance.

ICICI Securities noted that mid- and small-cap indices surged by 35% since October 2023, with a standard 12% correction amid a bull market. RailTel’s stock price was under various moving averages but above others, with an RSI at 9.22.

RailTel Corp, a Mini Ratna (Category-1) PSU, is a leading information and communications technology (ICT) provider in India with a vast optic fiber network, while the government holds a 72.84% stake. Living Media India Limited disclaims providing stock market news as investment advice, urging readers to consult financial advisors for investment decisions.

Rachel Adams

Times News Global is a dynamic online news portal dedicated to providing comprehensive and up-to-date news coverage across various domains including politics, business, entertainment, sports, security, features, opinions, environment, education, technology and global. affairs. Our commitment lies in sharing news that is based on factual accuracy, credibility, verifiability, authority and depth of research. We pride ourselves on being a distinctive media organization, guided by the principles enshrined in Article 19 of the Universal Declaration of Human Rights. Made up of a team of ordinary people driven by an unwavering dedication to uncovering the truth, we publish news without bias or intimidation.

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