Home / Markets / Stock Markets /  ITC share price climbs to new 52-week high. What's driving this FMCG stock?

On account of lowering commodity prices and better expected numbers in hospitality and cigarettes' business in the wake of unlock theme, uptrend in ITC share price continues. The FMCG stock has hit new 52-week high today in early morning deals while hitting an intraday high of 317 per share. ITC share price today opened upside and went on to climb to its new 52-week high, logging near 1.60 per cent intraday gain in morning session on Monday.

According to stock market experts, ITC shares are in uptrend due to lowering commodity prices and unlock themes. They said that the market is expecting better footfall for the company's hospitality and cigarettes' business. They said that it is icing on the cake for the co0mpany as its FMCG business is already raking moolah due lowering commodity prices. Experts said that the stock is in uptrend on chart pattern and it may go up to 340 apiece levels in short term.

Speaking on the reasons that is driving ITC share price rally, Ravi Singhal, CEO at GCL Securities said, "ITC shares are rising as lowering commodity prices are expected to improve margins of the company. The company is expected to receive better footfall in the wake of unlock theme as its hospitality and cigarettes' business is expected to pick up in this theme." Ravi Singhal of GCL Securities went on to add that market is buzz about divestment in ITC, which is also helping the stock to climb. However, he maintained that there is not a single hint from the company in this regard and hence, one should not take any position only because of this market buzz.

Expecting further rally in the ITC counter, Sumeet Bagadia, Executive Director at Choice Broking said, "The stock is looking in uptrend and one can buy and hold the stock for short term target of 330 to 340 apiece levels maintaining stop loss at 300 per share levels. Those who have this stock in their portfolio are advised to upgrade their stop loss at 300 and hold for immediate target of 340 levels."

After ushering in new year 2022, ITC share price has been in uptrend. In YTD time, this FMCG stock has risen from around 220 to 315 levels, logging near 45 per cent rise in this period.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint.

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Asit Manohar

Chief Content Producer at Live Mint Digital Team
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