ITC shares rise 2% a day after hitting a 52-week low following GQG’s Rs 9,395 crore stake sale. What lies ahead?
ITC shares rose after Rajiv Jain-backed GQG sold shares worth Rs 9,395 crore, reducing its stake amid a sharp stock decline. Cigarette tax hikes, inflation and rising oil prices weighed on performance. Investors now await quarterly earnings, while brokerages remain divided on the stock’s outlook and valuation prospects.
On Friday, ITC shares climbed approximately 2% as the stock recuperated some of its recent losses, following a 52-week low triggered by the sale of a significant stake by Rajiv Jain-backed GQG. The emerging markets fund, linked to GQG, offloaded nearly 37 crore ITC shares at Rs 257.35 each in a substantial block deal on Wednesday.
Despite this, other investors, including Fidelity, ICICI Prudential Mutual Fund, and SBI Mutual Fund, purchased shares in the FMCG major. GQG retained a 3.12% stake, amounting to 38.99 crore shares. On Wednesday, ITC shares plummeted over 4%, plummeting to a new 52-week low of Rs 253.15 per share and declining 36% over the past year.
The stock's performance over the next few years has been mixed, with a more than 41% negative return over three years but a 12% gain over five years. The recent sharp decline in the stock price was primarily driven by several headwinds.
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