ITC gains on Morgan Stanley upgrade

Morgan Stanley upgraded the stock to "overweight" from "equal-weight" and increased the price target to 400 rupees from 360 rupees

Shares in ITC ltd have turned positive and are trading higher after Morgan Stanley upgraded the stock to "overweight" from "equal-weight" and increased the price target to Rs 400 rupees from Rs 360.

"ITC is a strong consensus buy - yet one of the worst-performing stocks in our coverage over the past 12 months - trailing the Sensex by 35%," the investment bank said in a note.

"After recent underperformance, we believe ITC stock is factoring in a cigarette volume decline in FY15," it said.

Shares in ITC were up 0.3% at Rs 316.85 at 12:27 p.m.