Sharekhan by BNP Paribas recommends ITC, a largecap company, for its growth plan, steady balance sheet, and favorable valuation. With a "buy" rating and price target of Rs 515, it offers over 20% upside potential.
The big sale by BAT turned out to be a blessing in disguise rather than a nightmare for shareholders of ITC, as the stock shot up nearly 9% intraday. The stock ended 4.5% higher on the BSE at Rs 422.40. This indicates the strong institutional interest in the stock given the upbeat growth outlook.
“Recently, large-cap stocks have experienced robust buying, including large-cap auto, banking, and IT stocks. Despite this, strong profit booking in small-cap stocks has contributed to underperformance in the small-cap index compared to the Nifty.”