ITC declines 5% on profit-booking

FMCG major, ITC, declined by about 5%, on Monday after investors booked profit in the company's shares. This is the larges intra-day fall for the company since may 2012.

The decline was expected said market analysts, adding that the stock had run-up significantly in the last one month period. Investors could have looked at booking profits in the company ahead of its results this week.

The stock ended the day at Rs 335.85 per share on the BSE, down Rs 18 per share or 5.3% from its previous close. On the NSE, the stock ended the day at Rs 336, down Rs 18 per share or 5.1%.

ITC is the index-heavyweight with the stock accounting for about 11% in the Sensex and 9% on the NSE. According to market analysts, on Monday, ITC alone was responsible for 31 of the 126 points lost by the Nifty.

“It (selling of the stock) is more on account of profit-booking. The stock, which most FIIs and DIIs have heavy exposure to has fallen by about Rs 65 to its current levels,” said V Balasubramanian, Vice President & Fund Manager, IDBI Mutual Fund.

The stock hit Rs 284.60 per share on April 10, the lowest-level since January this year. Since then the sock had gained as much as 24% to touch Rs 352 on May 10.

The company is expected to announce its results on May 17, 2013.