ITC, which fell by 5.4% on Tuesday, is likely to see a rebound in its stock price, said analysts as they believe it is still attractively priced.
The scrip of the FMCG-major fell to Rs 302.25 per share on Tuesday on a day when the BSE Sensex was down 3.5%. ITC is the most influential of the 30 stocks that make up the Sensex and has a weightage of around 10.78%.
On Monday, ITC’s share price moved up by 3.8% as it hiked prices in some of its cigarette brands - Gold Flake Kings, Gold Flake Lights and Classic – by over 10%.
“The stock was down (on Tuesday) because the broader market was down. In terms of opportunity, it is one of the better quality FMCG stocks and is very attractively priced,” said Rikesh Parikh, vice-president of equities at Motilal Oswal Financial Services.
“The stock is likely to move up from these levels. However, it is an index stock and if there is selling in the index, then that could impact the stock price,” added Parikh.
Going forward, the target price for the stock, according to analysts, has been set at Rs 372 per share.
