ITC Share Price Shows Signs of Recovery After Hitting 52-Week Low on Excise Duty Shock

ITC Ltd shares were trading at ₹343.00 on Wednesday, registering a modest gain of ₹0.55 (0.16%). The stock edged slightly higher compared to Tuesday’s close of ₹342.45, indicating some stability in today’s session despite recent volatility.However, the broader trend remains weak. Over the past five trading days, ITC has declined sharply by ₹44.85 or 11.57%, reflecting sustained selling pressure and cautious investor sentiment  after the government announced a steep hike in cigarette excise duty. The stock slipped to its lowest level in 3 years, marking a rough start to 2026 for investors. The shares of the hotels-to-cigarettes conglomerate dropped to a fresh 52-week low of Rs 337.75 apiece. This takes the total market cap erosion to Rs 82,000 crore in just four days. The stock later recovered some losses to close at Rs 343.25 apiece.ITC is widely-regarded as a safe stock to hold considering its dividend-paying history. In FY25, ITC declared and paid a total dividend of Rs 14.35 per share. As of January 6, 2026, the company's dividend yield is approximately 4.10 percent.

Siddharth Maurya, Founder & Managing Director, Vibhavangal Anukulakara says,  the initial level of support is seen around Rs 328, while the resistance can be noted at Rs 388-390. "A close above the resistance mark might trigger the recovery phase; however, a close below Rs 328 might result in intensification of the negative trend,” he further said. ITC's collapse following the 40 percent cigarette tax hike has triggered one of the most violent single-day liquidations in recent memory. Drumil Vithlani, Technical Research Analyst at Bonanza, said that the stock is clearly showing strong bearish sentiment. “The stock is now in a downtrend and is trading below all major EMAs of 20, 50, 100, and 200, confirming weakness on the weekly timeframe. The RSI stands at 22.96, indicating an oversold zone; however, its 14-day RSI average is near 42.8, suggesting that any short-term cool-off in RSI may not translate into a sustainable reversal,” he said.

The analyst expects the downside momentum to continue, and advised investors to avoid fresh entries. “The earlier support at 380 now acts as a strong resistance zone, while the next major support is placed near the 310 level,” he said. Macquarie has downgraded the stock to 'Neutral' from 'Buy', and slashed its target price by 34 percent to Rs 330 apiece, NDTV Profit reported. The latest target price implies a downside potential of around 6 percent from the stock's previous closing price.The sudden decline in ITC's share price led to large notional losses for three major government-owned insurance companies. Life Insurance Corporation of India (LIC), which owns 15.86 per cent of ITC, witnessed the value of its stake falling from Rs. 80,028 crore on December 31 to Rs. 68,560 crore on January 2. This amounts to a notional loss of Rs. 11,468 crore. General Insurance Corporation of India (GIC), with a 1.73 per cent stake, lost Rs. 1,254 crore, while New India Assurance Company, holding 1.4 per cent, saw a decline of Rs. 1,018 crore.