Watch out for ITC; its outperforming!
The government plans to raise about Rs 22,000 crore by selling its 7.93 per cent stake in ITC along with a 4.6 per cent stake in Axis Bank.
On Tuesday, the domestic markets continued to slip in red with Sensex & Nifty trading lower by 1 per cent and 1.09 per cent at 52,025 and 15,581.05 levels, respectively.
Meanwhile, ITC managed to outperform the domestic benchmark indices as it is trading 0.60 per cent on the downside since the beginning of the trading session today. During the last week, the government decided to sell the remaining stake in companies held under the special undertaking of UTI (SU-UTI). The government plans to raise about Rs 22,000 crore by selling its 7.93 per cent stake in ITC along with a 4.6 per cent stake in Axis Bank.
SUUTI holds minority stakes in multiple listed & unlisted companies, with a majority of the value invested in hotels to personal care conglomerate - ITC Ltd and construction engineering company - Larsen & Toubro Limited. Most of the stake in L&T has been sold off in the past. The government’s schedule of disinvestment in FY22 may get hampered due to the unsettled COVID situation.
Parliament bifurcated Unit Trust of India (UTI) in 2002, creating SU-UTI and UTI Asset Management Company Pvt Ltd. The former holds the assured-return investment plans of UTI whereas the latter oversees market-linked plans.
On Tuesday, ITC's share is trading at Rs 206.55, which is 0.60 per cent down on BSE.