ITC Limited shares continued their losing streak for the fourth consecutive trading session on Wednesday, hitting a fresh 52-week low of Rs 272.25. This persistent decline follows a period of sustained selling pressure in the FMCG stock, which had already fallen below the crucial Rs 300 mark on May 27.
The stock recorded new 52-week lows on May 29 (Rs 286), June 1 (Rs 278.40), June 2 (Rs 277), and June 3 (Rs 272.25). This correction has resulted in significant losses for investors, with a 24% decline this year, 31% over six months, and 34% over the past year.
Impact of Government Tax Hike
A primary driver for the prolonged correction in ITC stock is the government's overhaul of tobacco taxation in February 2026. This policy change replaced the compensation cess with GST and simultaneously increased excise duties on cigarettes. The move substantially raised the overall indirect tax burden on cigarette manufacturers, leading to investor concerns about potential volume growth and profitability for companies like ITC.
Currently, ITC shares are trading below all key short-term and long-term moving averages, signaling a bearish trend. The stock's Relative Strength Index (RSI) stands at 31.1, nearing the oversold territory (below 30), which could potentially precede a relief rally.
Expert Analysis and Price Targets
Market analysts are closely watching ITC's trajectory. Jigar S Patel, from Anand Rathi, noted that support for ITC shares is established at Rs 280, with resistance at Rs 310. A decisive breach above Rs 310 could pave the way for an upward movement towards Rs 330. Patel expects the stock to trade within the Rs 280-Rs 330 range in the short term.
Hitesh Tailor, Technical Research Analyst at Choice Broking, highlighted continued weakness for ITC on weekly charts, trading below its 20, 50, 100, and 200-week Exponential Moving Averages (EMAs). This indicates a negative medium to long-term trend. Tailor stated that the stock has faced sustained selling pressure since falling below the Rs 300 support zone. He anticipates that as long as ITC trades below the Rs 300-305 resistance zone, weakness will likely persist, with potential downside pressure towards the Rs 270-260 range.