- Summary:
- Despite hitting a rough patch in December, IRFC share price has the ingredients of an upside and lower interest rates could sweeten the deal.
IRFC share price closed the year on a low, dropping by 2.8% to end the session at Rs 149.09. The government-owned corporation lost more than half of the gains generated on Monday when it spiked by 4.8%. Also, it was an outlier on a day when railway stocks including RVNL and IRCON rose by more than 2 percent each.
IRFC share price to stay on the growth path
Despite going down by -2.5% in the last month, IRFC share price ended 2024 up by 49%, giving investors good returns on their investment. Also, the Indian government intends to increase its spending on railay infrastructure development in the medium and long term.
The sector was allocated approximately $3.06 billion in the 2024-2025 fiscal year, and that figure is expected to add up to $14 billion in the next five years . A bulk of the expenditure will go towards acquiring 3,000 trains and laying 5,000km or rail in the next five years. This augurs well for IRFC (NSE: IRFC), thanks to its status as the leading financier in the sector.
IRFC share price will likely stay on the growth path in the medium-term and long-term as it continues to midwife India’s ambitious railway modernisation plans. However, interest rates will also weigh in on the stock’s performance, as it could impact the attractiveness of IRFC products to borrowers.
The Reserve Bank of India (RBI) retained interest rates at 6.5% for the elevent successive month in December, and that could keep the lending costs high in the next few months. However, the central bank is expected to slash rates in the first quarter of 2025, and that could inject fresh impetus into the market.
IRFC share price prediction
Pivot: IRFC share price will likely pivot at Rs 153.15. The sellers will be in control if resistance stays at that mark. Otherwise, the upside could prevail.
Support: Primary support at Rs 146.90. A breach of that mark could establish the second support at Rs 141.30.
Resistance: Initial resistance is likely to be at Rs 157.90. Breaking above that level will invalidate the downside narrative. Extended control by the buyers could test Rs 165.10.
