Heard on the street: Large Broking Company accumulates ITC stocks

Mumbai-based large listed brokerage is said to have been accumulating shares of FMCG major ITC over the past three weeks. According to market sources, the broker’s proprietary desk started buying ITC when prices were hovering at Rs 205 per share.

The broker, according to sources, is bullish about ITC’s cigarette business, which is likely to grow despite some states hiking value-added tax on tobacco products.

Given the company’s pricing power and addictive nature of cigarettes, ITC will have no difficulty in passing through the prices to end-users. Shares of ITC have gained over 13% over the past one month. ITC shares ended 0.3% higher at Rs 245.30 on the BSE on Friday.

Contributed by Shailesh Menon