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ITC Shares Rise as FMCG Major Shows Early Signs of Recovery Amid Market Crash

By Lokmat Times Desk | Updated: January 22, 2026 11:32 IST

ITC Ltd shares traded in the green today, with the stock rising ₹1.35 or 0.42% to ₹326.10 on the ...

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ITC Ltd shares traded in the green today, with the stock rising ₹1.35 or 0.42% to ₹326.10 on the NSE. The gain comes after a previous close of ₹324.75, reflecting mild buying interest in the counter. The move indicates steady investor confidence in the FMCG major amid broader market activity, with ITC continuing to remain in focus for its stable fundamentals and diversified business portfolio. However, few shareholders are in a fix after holding the stock for nearly 8.5 years. The FMCG stock closed at Rs 324.70 in the previous session. On July 17, 2017, the ITC stock stood at Rs 325.75 with investors in the FMCG stock logging zero returns till date in over eight years. ITC shares, which hit a 52-week low in the previous session, are deeply oversold on charts following fresh excise duty hikes on cigarettes announced by the government in the beginning of this month. RSI of the ITC stock stands at 16, way below the threshold of 30 mark.

Subsequently, sentiment turned weak with the stock plunging 11%,leading to a loss of Rs 97,000 crore in market capitalisation this month. This month's  loss is almost equal to the 11.92% loss shareholders incurred in 2025. The stock closed lower in the last year after four straight years of annual gain. In the previous session, ITC shares closed on a flat note at Rs 324.70. Market cap of the firm stood at Rs 4.06 lakh crore. The stock fell to a 52 week low of Rs 324.35 on BSE. The stock is down 21% in three months and 27% in two years. Brokerage Nuvama has downgraded the ITC stock from 'buy' to 'hold', expecting negative impact of excise duty hikes on sales and operational income. It has assigned a price target of Rs 415 against the earlier Rs 534 on the ITC stock.

Japanese Brokerage Nomura double-downgraded ITC to "reduce" from its earlier rating of "buy" and pared its price target by Rs to Rs 340 from Rs 540 earlier. Centrum Broking estimates tax increase stands at 35-55% depending on stick length for filter cigarette which will require MRP hikes of 20-35% to negate the tax incidence. "However, such steep MRP hike will result in double digit decline in cigarette volumes in FY27E. Hence, we cut our earnings estimates by 10-13% for FY27-28E. We downgrade the stock from BUY to NEUTRAL," said the brokerage.

The stock has gone down by 21% in the last 6 months. The stock extended 2025 losses and tumbled nearly 10 per cent on the very first trading session of the New Year. The FMCG major is also all set to announce their Q3 earnings ITC had declared its earnings for Q2 FY26 at around 4.30 pm on October 30, 2025. Therefore, it is expected that it might announce its Q3 FY26 earnings at around the same time on Thursday, January 29, 2026. Along with the earnings for the October-December quarter of FY26, the FMCG might also consider the declaration of an interim dividend for the financial year ending on March 31, 2026.ITC has been paying consistent and rich dividends to its shareholders. In 2025, the FMCG giant gave a dividend three times – Rs 7.85 in May, and Rs 6.50 in February, respectively.In 2024, the company awarded dividends on two occasions – Rs 7.5 in June and 6.25 in February, respectively.

 

Tags: ITC Share PriceITC Share Price AnalysisStock Market CrashStock marketItc foodsFmcg
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