ITC shares rise 2% a day after hitting a 52-week low following GQG’s Rs 9,395 crore stake sale. What lies ahead?

ITC shares rose around 2% on Friday as the stock recovered some losses a day after tumbling to a 52-week low as Rajiv Jain-backed GQG sold shares worth around Rs 9,395 crore in a block deal, reducing its stake in the FMCG major after the stock crashed 30% in 2026 so far amid multiple headwinds.

GQG-linked emerging markets fund sold nearly 37 crore ITC shares at Rs 257.35 apiece in a large block deal on Wednesday, even as Fidelity, ICICI Prudential Mutual Fund, SBI Mutual Fund and other domestic and foreign investors bought into the FMCG major. As of June 2026, GQG held a 3.12% stake in ITC, equivalent to 38.99 crore shares.

ITC shares plunged more than 4% on Wednesday, hitting a fresh 52-week low of Rs 253.15 apiece and dropping 36% over one year. The shares of the company today jumped 2% to Rs 259.60 apiece. In the longer term, the stock has delivered negative returns of more than 41% in three years, but gained over 12% in five years. The sharp selloff in the stock this year was driven by multiple headwinds.


Also Read | Rs 9,395 crore block deal! GQG exits ITC shares after a sharp 30% crash this year

The implementation of additional excise duty on cigarettes earlier this year sparked a massive selloff in cigarette-makers, part of which was later recovered after the company announced price hikes. The overall inflationary pressures arising due to soaring oil prices amid supply disruptions further impacted the stock, along with its peers and overall market.

What lies ahead for ITC share price?

All eyes now turn towards the upcoming Q2 earnings announcement of ITC. Nomura in a recent note named ITC is top pick among the consumer staples. The international brokerage has a ‘Buy’ call on the stock. JM Financial however expects weak performance by ITC during the earnings season.

HDFC Securities has maintained its ‘Add’ rating on the stock with a target price of Rs 300. The brokerage valued the cigarettes business at Rs 137 per share and the other FMCG business at Rs 98 per share.

HDFC Securities said ITC had chosen a phased approach to cigarette price increases after the tax hike, instead of taking a one-shot increase, except in the KSFT segment. Their channel checks suggested that most of the required price hikes were now in place.

Also Read | GQG Partners sells Rs 24,400 cr worth of Indian stocks in 2026; ITC, Adani shares among key exits

Disclaimer: This article has been written by Debaroti Adhikary, who is not a SEBI-registered Research Analyst or an Investment Adviser. Debaroti Adhikary and his/her ‘relative(s)’ (as defined under Section 2(77) of the Companies Act, 2013) do not hold any financial interest in the companies mentioned in this article as of the date of publication. The views/recommendations mentioned in this article, wherever applicable, are those of the respective SEBI-registered Research Analyst/brokerage and have been reproduced/reported with due attribution. They should not be construed as the views or recommendations of The Economic Times Digital or the journalist. Readers are advised to consider the original research report and make their investment decisions based on their own assessment. Brokerage disclaimers here.