Shares of Indian Railways Finance Corporation (IRFC) Ltd. are seeing some selling pressure on Monday despite a positive announcement coming in for the stock last week.

As part of the rejig announced by the National Stock Exchange to its various indices on Friday, IRFC was announced as the new entrant to the Nifty PSE index, which is an index of the top state-run companies in the country.

IRFC will replace Life Insurance Corporation of India (LIC), India’s largest insurance company, but a stock that continues to lack free float in the market as the government holds 97% of the total equity.

Although IRFC will be the new entrant to the Nifty PSE index, it is unclear as to whether it will see any form of inflows when the adjustments take place.

IRFC shares will begin trading on the Nifty PSE index from September 30.

Shares of IRFC are among the PSU outperformers from last year and that outperformance has spilt over into this year as well. The stock has gained 80% so far in 2024. Over a 12-month period, the stock is up 272%.

However, for Monday’s trading session, shares of IRFC are down 1.1% at ₹181.31. The stock has corrected 21% from its record high levels of ₹229, which it had hit in the month of July.

Shares of IRFC have snapped a three-day winning streak in today’s trading session currently.