ITC Shares Climb Following Budget Boost

On July 24, 2024, shares of ITC, a major player in the FMCG sector, saw some exciting movement in the stock market. The stock closed at ₹494.05, slightly up from the previous day’s ₹492.05, displaying a 0.41% increase. Just the day before, ITC shares even soared past the ₹500 mark for the first time ever, hitting a high of ₹510.60.

This spike in shares comes on the back of the Union Budget 2024 announcement, where there was no hike in the tobacco tax, a significant portion of ITC’s revenue comes from its cigarette business. This decision has brought a wave of positivity among investors, making them eager to jump into this stock.

In the latest trading session, ITC opened at ₹496.90 and managed to reach a peak of ₹510.60 before stabilizing. Even with a market cap of ₹619920.3 crore, analysts are watching closely as the stock has recently fluctuated between a 52-week high of ₹499.6 and a low of ₹399.3.

Technical analysts have noted a potential downturn, as a decrease in futures prices alongside rising open interest indicates that investors might expect the stock to decline soon. For those trading in ITC, it might be wise to keep tabs on these trends.

Moreover, the budget announcement also included a significant focus on rural development, with an allocation of ₹1.52 lakh crore for agriculture and allied sectors. This was met with enthusiasm since ITC’s non-tobacco businesses, like FMCG and Agri sectors, are expected to benefit from the recovery in rural demand.

Brokerage firm Macquarie has even begun covering ITC, giving it an “outperform” rating and setting a price target of ₹535. Similarly, Jefferies has upgraded its position from “hold” to “buy,” raising its price target to ₹585 from ₹435.