Long bets grow in ITC on expected rally

Reuters Market Eye - Investors are placing long positions on equity futures of ITC Ltd , dealers say, in an indication they expect a rally in shares of the cigarette maker.

ITC equity futures have seen 8,475 contracts added, most of which are long positions, according to the traders.

Sunil Kumar Arora, futures and options head at Kantilal Chhaganlal Securities, said the increase in long bets could indicate investors are expecting good news from the cigarette maker, adding the stock is also attractive because of the "huge reserves in its balance sheet".

ITC is up 0.2 percent at 1:00 p.m., after earlier hitting its all-time high of 345.95 rupees. The stock has gained 4.2 percent since the start of May as of Wednesday's close, in line with a broad-based rally in Indian stocks.

 

(Reporting by Abhishek Vishnoi)