Shares of FMCG and cigarettes major ITC have fallen to a 52-week low, signaling a prolonged bearish trend in the market. The stock has experienced substantial declines, including a 25% drop this year, 16% over six months, 33.50% in the last year, and a 34% decrease over three years, as of August 17, 2026.
FII Stake Declines Amid Downturn
A significant factor contributing to ITC's struggle is the continuous reduction in Foreign Institutional Investor (FII) stake. FII holdings in ITC have fallen from 40.5% in the June 2024 quarter to 34.2% in the June 2026 quarter, indicating a sustained withdrawal of foreign investment.
On Monday, the stock reached a fresh 52-week low of Rs 273, down from its previous close of Rs 277.60. This pushed the company's market capitalization down to Rs 3.42 lakh crore. The shares have consistently traded below their 5-day, 10-day, 20-day, 30-day, 50-day, 100-day, 150-day, and 200-day simple moving averages, reinforcing the bearish outlook.
Analyst Views on ITC Share Price Target
Market experts offer cautious advice regarding ITC's current trajectory:
Virat Jagad, technical research analyst at Bonanza Portfolio, stated, "ITC is trading in a bearish trend, with price below the major short-term and long-term moving averages, indicating continued weakness. The stock has recently broken down below the Rs 275 support zone, confirming selling pressure. RSI is also weakening and remains below the 50 level, while volumes do not indicate strong buying interest. Fresh entry should be avoided at current levels until a clear reversal or support confirmation emerges. The recently broken Rs 275 level may now act as resistance. On the downside, Rs 265–Rs 260 can be considered the next important support zone. Sustained trading below Rs 275 keeps the overall technical structure weak and bearish."
Jigar S Patel from Anand Rathi provided his analysis: "Support is placed at Rs 268, while resistance stands at Rs 280. A decisive breakout above Rs 280 could open the door for further upside towards Rs 285. For the short term, the stock is expected to trade within the Rs 268-Rs 285 range."
Financial Performance and Tobacco Tax Impact
ITC reported a 16.21% year-on-year (YoY) fall in its consolidated net profit for the June 2026 quarter (Q1 FY27), reaching Rs 4,394.13 crore compared to Rs 5,244.20 crore in the same period last year. Despite the profit dip, revenue from operations saw a 27.64% YoY increase, rising to Rs 29,523.30 crore in Q1 FY27 from Rs 23,129.35 crore previously.
The company's stock performance has also been affected by external factors, including a hike in taxes on tobacco in January 2026, contributing to its 25% decline in 2026 following a 12% fall in 2025.