Fiis Cash In On Price Gap In Itc Share, Gdr

The gap was at a staggering high of Rs 89.40 per share on October 22, up from Rs 24.05 around September 30.

The difference stood at Rs 53.18 at the end of the month. Even at lower levels, the scrip offered significant opportunities for arbitrage.

Market sources said this partly explains the large volumes traded in ITC in the past few weeks. Apparently, some FIIs have been buying at these prices because the GDR has been a good sell at higher prices.

The ITC GDR quoted at $10.50 on October 31, a rise of $2.85. The GDR opened on October 1, 1995 at $ 9.25 recorded a high of $11 on October 15, dipped slightly and rose again to $11 on October 22 and 23 to finally close at $10.50 at the end of the month.