ITC will underperform both FMCG space and Nifty: Sanjeev Agarwal

Sanjeev Agarwal, Director, Dynamix Research & Capital Management in a chat with ET Now discusses the prospects for ITC stock.

What about ITC? Steep 17% excise hike coming in the budget. They are looking at evaluating a price hike and it may actually cause a shift towards perhaps cheaper duty free alternatives coming in. How is ITC looking?

ITC is actually not looking very strong at these levels and this share is not going to perform very well. The whole idea about this FMCG space is that it is working at a defensive space but given that there are some negatives in the budget for ITC in particular for the excise hike, this counter is going to underperform the FMCG space as well as the Nifty as well.