Why is IFCI falling/rising?

Jul 11 2025 09:39 PM IST
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As of 11-Jul, IFCI Ltd. is experiencing a decline in its stock price, currently at 60.65, reflecting a total loss of 1.83% over the last two days and 3.12% over the past week. Weak long-term fundamentals and reduced investor participation indicate ongoing downward pressure on the stock.
As of 11-Jul, IFCI Ltd. is experiencing a decline in its stock price, currently at 60.65, which reflects a decrease of 0.79 or 1.29%. The stock has underperformed its sector by 0.37% today and has been on a downward trend for the last two days, accumulating a total loss of 1.83%. Over the past week, the stock has decreased by 3.12%, and over the last month, it has fallen by 6.11%. Although the stock is trading above its 50-day, 100-day, and 200-day moving averages, it is below its 5-day and 20-day moving averages. Additionally, there has been a notable drop in investor participation, with delivery volume decreasing by 31.27% compared to the 5-day average. While the company has shown strong growth in profit before tax and profit after tax, the long-term fundamentals remain weak, with a low return on equity and declining net sales, which may contribute to the stock's recent struggles.

In the broader market context, IFCI's short-term performance has been significantly worse than the benchmark, with the Sensex only declining by 1.12% over the same week. This underperformance is further highlighted by the company's year-to-date return of -2.54%, contrasting sharply with the Sensex's gain of 5.58%. The decline in institutional investor participation, with a reduction of 0.57% in their stake, indicates a loss of confidence among more knowledgeable investors, which could further pressure the stock. Overall, the combination of weak long-term fundamentals, falling investor interest, and poor short-term performance relative to the benchmark suggests that IFCI's stock price is facing downward pressure.
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