Mon Oct 27 16:20:00 UTC 2025: Here’s a summary and a news article based on the provided text:

Summary:

ITC Ltd shares, after recent declines, are expected to see a marginal recovery. While short-term performance has been weak, with a potential dip into negative two-year returns, long-term returns remain strong. Foreign Institutional Investors (FIIs) have been consistently selling, while Domestic Institutional Investors (DIIs) have increased their holdings. Technical indicators show the stock is neither oversold nor overbought. Analysts are largely bullish, citing factors like strong management execution, a solid cigarette business, and FMCG growth, with price targets suggesting upside potential. Key support levels are identified, and further gains are anticipated if certain resistance levels are broken.

News Article:

ITC Shares Poised for Rebound Amid Shifting Investor Sentiment

MUMBAI, October 26, 2025 – Shares of ITC Ltd. are showing signs of a potential recovery after a period of short-term correction. While the FMCG giant’s stock price, currently trading around Rs 415, has slipped 8% year-to-date and hovers precariously close to erasing its two-year gains, analysts suggest a turnaround is on the horizon.

The stock, which touched a 52-week low of Rs 391.50 in March, has faced headwinds from consistent selling pressure by Foreign Institutional Investors (FIIs). FII stake has declined for the fourth consecutive quarter, now standing at 37.4%. Conversely, Domestic Institutional Investors (DIIs) have been actively accumulating ITC shares, increasing their holding to 47.5% in the latest quarter.

“ITC remains in a gradual uptrend, supported by strong defensive demand and steady earnings visibility,” said Riyank Arora, Technical Analyst at Mehta Equities. He highlighted Rs 410 as a key support level, with a breakout above Rs 425 potentially leading to Rs 440-Rs 450.

Brokerage Emkay Global maintains an “ADD” rating on ITC with a target price of Rs 475, suggesting a 14% upside. This positive outlook is attributed to factors such as improved management execution, a dominant position in the cigarette market, and the overall growth potential of the FMCG sector.

AR Ramachandran, a SEBI-registered independent analyst, noted that the stock is slightly overbought on daily charts with robust support at Rs 413.5. He anticipates a near-term target of Rs 443 if the price closes above the resistance level of Rs 427.

Despite the recent underperformance, ITC’s long-term track record remains impressive, with a 165% return over the past five years. The company’s robust fundamentals and shifting investor sentiment suggest a positive outlook for the near future.

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