Shares of ITC Ltd gained around 1% to ₹317 on the NSE on Monday after reports that Parag Parikh Flexi Cap Fund increased its stake in the company during January 2026, lending support to investor sentiment. The flexi-cap fund — the largest active fund in its category by assets under management — saw its AUM rise to ₹1,33,969 crore in January 2026 from ₹1,33,308 crore in December 2025. The increase in exposure to ITC comes at a time when the stock has been under pressure over the past six months, declining nearly 22%.
Apart from ITC, the fund also increased its stake in several large-cap names including Tata Consultancy Services, Cipla, HCL Technologies, HDFC Bank, Infosys, Mahindra & Mahindra, Maruti Suzuki, Zydus Lifesciences, Power Grid Corporation of India, and The Great Eastern Shipping Company during the month, indicating selective accumulation in blue-chip stocks.
Meanwhile, the fund trimmed its holdings in Coal India and Multi Commodity Exchange of India (MCX). Around 22.07 lakh shares of Coal India and 2,247 shares of MCX were sold from the portfolio. Exposure in 11 other stocks, including Axis Bank, ICICI Bank, Indian Energy Exchange, Indus Towers, Nesco, Swaraj Engines and Zydus Wellness remained unchanged.
The fund is managed by Rajeev Thakkar, Raunak Onkar, Raj Mehta, Rukun Tarachandani, Tejas Soman, Mansi Kariya, and Aishwarya Dhar, and is benchmarked against the NIFTY 500. On the corporate front, ITC recently announced an interim dividend of ₹6.50 per equity share for the financial year ending March 31, 2026. The record date was fixed as February 4, 2026, with the dividend scheduled to be credited between February 26 and February 28, 2026, offering near-term support to investor sentiment.
Earlier this month, on February 6, ITC shares had surged nearly 6% to close at ₹326.35, snapping a two-session losing streak, though the rally proved short-lived. While the dividend announcement provides temporary support, brokerages remain cautious on the stock’s near-term upside amid a weak price trend. Despite recent volatility, the fresh stake increase by Parag Parikh Flexi Cap Fund appears to have provided short-term momentum to ITC shares.