Shares of ITC are under intense selling pressure over a period of two years. The FMCG stock stands near its 52 week-low of Rs 391.50 reached on March 3, 2025. The stock has slipped 16% in a year and fallen 12% on year to date basis.
In two years, the stock is down 4%. However, it more than doubled investor wealth clocking 118% returns in five years.
Foreign investors or FIIs have sold the stock for the third straight quarter. In September 2024 quarter, FII stake stood at 40.5%, which fell to 40.2% in the December quarter. It stood at 38% in the June quarter declining from 39.9% on a quarter-on-quarter basis.
However, domestic institutional investors (DIIs) kept adding the stock to their portfolios in three quarters. DII holding in June 2025 quarter stood at 47% against 45.2% in the preceding quarter. It rose from 44.6% in the September quarter to 45% in the December 2024 quarter.
Amid the ongoing correction on the ITC counter, analysts mostly seem bearish on the outlook of the stock. Here’s what they said.
Osho Krishan from Angel Broking said,”ITC has encountered resistance near the 200-DSMA and has subsequently declined, establishing a pattern characterized by lower lows and lower highs in the short term. The price range of Rs 400-390 constitutes a critical support zone, historically providing a buffer against declines, and is anticipated to maintain its role as a support level. Conversely, the range of Rs 416-420 represents a significant resistance threshold; only sustained buying activity at this level could mitigate the current sluggishness observed in the stock.”
Shitij Gandhi, Sr. Research Analyst (Technicals), SMC Global Securities said, “From a technical standpoint, the short-term trend has weakened, as evidenced by the bearish crossover on the daily MACD indicator. This development reflects a waning of upside strength. Any sustained breakdown below Rs 405 could expose the stock to further downside risk, potentially dragging it towards Rs 398-Rs 395, which represents the next important support area on the charts.”