ITC sees profit taking after stock surges 24% in one month

The stock has outperformed the market surged 24% from Rs 285 since April 11, compared to 8.5% rise in benchmark Sensex till Friday.

ITC has dipped 4% to Rs 341 amid profit taking after the stock rallied 24% in past one month on the Bombay Stock Exchange (BSE). The stock is largest loser in the benchmark index Sensex and NSE CNX Nifty. 

The stock opened at Rs 354 and has seen a combined 3.41 million shares changing hands on the counter till 1100 hours on BSE and NSE.

 

ITC has outperformed the market by surging 24% from Rs 285 since April 11, compared to 8.5% rise in benchmark Sensex till Friday.

 

Meanwhile, the fast moving consumer goods giant has contributed over one-fifth of 1,840 points rally of the BSE benchmark index from its April 12 low. ITC, the most influential stock on Sensex, have alone accounted for 21% or 388 points of the total index gain till Friday. At the end of the day, the cigarette major has commanded 11.39% weight in 30-share Sensex.

 

A stock's weight in Sensex is measured by the value of a company's free-float or non-promoter shares that can be freely traded in the market.

 

Most of the analysts have bullish on ITC’s prospects. Out of 49 analysts polled by Bloomberg, 41 have BUY rating on the stock, 7 have SELL rating, while 1 have HOLD rating.

 

Others such as HDFC, ICICI Bank, Hindustan Unilever, Larsen and Toubro and HDFC Bank have together contributed another 41% or 762 points of total Sensex gain.

Though the Sensex has risen 10% from the low recorded in last month, more than half of stocks from Sensex basket have underperformed the market. Of the 16 stocks which underperformed the index, six stocks – Wipro, Jindal Steel and Power, Cipla, Tata Power, TCS and Coal India have recorded negative return up to 7%. 

 

Reliance Industries and Infosys has risen less than 4% each, while ONGC, Tata Steel, Sun Pharmaceutical Industries and Dr Reddy’ Laboratories have gained in the range of 3-7%.