ITC share rises 5.41% as investors found it alternate best
ITC share price started seeing a good rise from the afternoon of the Budget day and it continued the next day with over 5% increase in just one hour of day start. The FMCG cum hospitality share saw sudden decline for few minutes on Budget day after the FM announced a hike in tax on ciggarettes. However, the experts announced that the tax on cigartettes is negligible and thus would create not much negative impact on cigarette markets. There is also another reason why ITC share rose today as investors started preferring it over most favourites.
The ICICI securites said ” Net tax on cigarette would increase to 0.12 rs per stick and this would have negligible impact on companies”.
Bank shares dropped.
Hindenburg report led to the downfall of not only Adani shares but also the shares of those companies invest in Adani firms. LIC, SBI and other insurance and bank shares have seen sharp decline in the last two days. SBI has seen over 5% decline in it’s share value after it was started making news that SBI has investments in Adani. Union bank saw 2% and LIC saw a huge 12% loss in it’s share value after the Hindenburg report is out.
SBI which has been the most favourite along with Axis have seen the major decline in the last two days. PNB share which is being traded at low level since a month had also lost trust as it also has around 8k crore of exposure with Adani group.
FMCG the only major hope.
Indian consumer capacity of the middle class and rich has not impact in negative manner much due to the recession fears. The sales of Tata Consumers and ITC have not seen any drop and not to see any in near future. The union budget too was Middle class friendly by rising the slab of 5% tax to 6 lakhs from 5 lapa… This leads to a little more money flow into the market and obviously much through purchasings.
The growing demand for Instant foods and online orders of groceries have made Tata Consumers and ITC the major players as they own some known top brands.
Therefore, the investors have suddenly developed huge love on ITC and also for the reason that ITC is not trading at higher levels. The hospitality business is also on good rise since 2022 and it is likely to continue this year helping the FMCG giant to make good profits this year too.
ITC is one of the few well known and safe Indian companies to turn multibagger by 2030 .
