Headline: IRFC stock tumbles 5.4% despite Sensex rally as government OFS adds selling pressure
Shares of Indian Railway Finance Corporation (NSE: IRFC) plunged 5.40% on Wednesday — the steepest drop for the stock in June — sliding from an intraday high of 98.96 to trade near 93.35 minutes after the opening bell. The decline stood out as the broader market headed the other way: the Sensex surged more than 600 points on the same day.
The sell-off underscores weakening sentiment in IRFC’s charts. Watcher Guru cited an analyst who expects the stock to test the ₹92 area next; failure to regain momentum could open the door to a sub-₹90 move. IRFC had earlier hit a yearly low of ₹87 at the end of March amid volatility linked to the US–Iran conflict.
A major driver behind the recent weakness is the government’s disinvestment plan. IRFC is a state-run financing arm of Indian Railways and the government announced an Offer for Sale (OFS) earlier this year to offload 1% of its stake at a floor price of ₹91. The OFS will put 13.06 crore shares on the block, with an option to sell another 13.06 crore (an additional 1%). That supply surge has increased free float and liquidity — but it has also exerted downward pressure on the price as fresh shares hit the market.
Retail interest in IRFC is high — partly because the stock trades below ₹100, making it accessible to smaller investors. Market commentators say the recent correction is a normal reaction to the OFS and could stabilize once the sale is fully executed and supply is absorbed. Some analysts suggest accumulation on dips in the low- to mid-₹80s, while others caution that near-term downside remains possible until the settlement is complete.
What to watch next: how the OFS unfolds, volume patterns after settlement, and whether IRFC can reclaim the ₹90–₹92 band.
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