ITC finally starts rallying, but Twitter can't stop trolling it
- Shares of consumer product company
ITCsurprises investors by rallying 7.5% on Thursday.
- ITC gained just 8% in 2021 so far, massively underperforming peers and even the benchmark index Nifty 50, which surged 25% during the period.
- Investors shared their excitement on Twitter with humorous tweets as the stock is typically known for its narrow range stock movement.
AdvertisementExcitement of witnessing ITC rally about 8% in a day is real considering the stock has not moved much in 2021 or even in the last 5 years. Shares of the consumer product company have risen 8% in 2021, so far, thanks to the rally in the stock today, September 16.
ITC gained just 8% in 2021, so far, massively underperforming peers and even the benchmark index Nifty 50, which surged 25% during the period.
The stock is trading at ₹230.75, higher by 6.8% as of 11:52 a.m., on Thursday.
Analysts believe the rise in stock can be on expected lines as the stock has not performed since a long time. Meanwhile, there is no new fundamental development happening in the company that could have triggered the stock.
The rally in the stock could also be specific to the cigarette industry as most of the tobacco manufacturers were trading 5-9% higher including Godfrey Phillips, VST Industries, NTC Industries, Golden Tobacco and Raghunath Tobacco.
“This rally can be attributed to the stock specific trade strategy of the market investors who are putting money in the quality stocks available at discounted price. But the stock hasn't been able to sustain at highs. It has remained range-bound between ₹200 to ₹240 for the last 10 months. Fresh buyers should wait and see whether the stock manages to break its jinx and sustains at new highs," said Avinash Gorakshkar, Head of Research at Profitmart Securities, according to Mint.
Meanwhile, investors are busy sharing their happiness over share gains on Twitter in humorous ways.
Last week, global research firm CLSA had reportedly maintained a "buy" rating on the stock with a target price of ₹265 per share. The brokerage firm is of the view that the fast moving consumer goods (FMCG) business is firmly on the path for a profitable scale-up.
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