Shares of ITC Limited declined in intraday trading on Friday even as the broader market remained relatively stable. The FMCG major’s stock was trading at ₹309.75 on the National Stock Exchange of India, down ₹1.75 or 0.56%. The dip follows a strong rally last week when the stock gained more than 4%, prompting some investors to book profits. Despite the recent uptick, ITC shares have faced sustained pressure over the past several months. Over the last six months, the stock has fallen nearly 24%, reflecting continued selling interest.
In contrast, the broader market remained steady, with the Nifty 50 benchmark trading around 24,588.50 during the March 6 session. Investors tracking the FMCG sector are closely monitoring ITC to determine whether the current weakness is a temporary correction or a sign of prolonged pressure on the stock. Earlier this year, the stock touched a 52-week low of ₹302 on February 2, after which it saw mild buying support. The recovery has been partly aided by recent cigarette price hikes implemented by the company. However, analysts remain cautious in the near term as higher prices could potentially impact sales volumes.
According to Nandish Shah, AVP – PCG Research and Advisory (Fundamental) Wealth Management at Motilal Oswal Financial Services, the brokerage has maintained a “neutral” rating on ITC with a target price of ₹365. Shah noted that the company’s core cigarette business delivered stable performance in the third quarter, while the FMCG segment posted healthy growth in operating profit.
At the same time, changes in GST and excise duty effective February 1, 2026, have significantly increased cigarette taxation. While ITC’s wide portfolio across price segments offers some cushion, analysts caution that higher taxes could encourage the growth of illicit cigarette trade, which may impact the organised sector. From a technical perspective, Jigar S. Patel, Senior Manager – Equity Technical Research at Anand Rathi Share and Stock Brokers, pointed out that the stock is currently trading within the 50%–61.8% Fibonacci retracement range of its major rally from the COVID-era lows to its peak in September 2024. This range is often considered a strong support zone and may indicate a phase of consolidation before the next significant move.
Despite short-term challenges, analysts remain positive about ITC’s long-term growth prospects. The company has shown strong pricing power, successfully raising prices by 20%–40% across several key cigarette brands to protect margins. Over the longer term, growth is expected to be driven by improving urban consumption, stronger hotel occupancy in its hospitality business, and continued expansion of its non-cigarette FMCG segment, which aims to achieve ₹1 lakh crore in revenue by 2030