ITC shares surged to fresh 52-week highs on the BSE on Monday due to an improvement in the company's outlook. The shares of the cigarette and fast moving consumer goods major touched an intra-day and yearly high of Rs 239.40, up 4 per cent, on the BSE in early morning trading, a level last seen on February 9. At 12:45, ITC shares were trading at Rs 236, higher by 2.1 per cent, on the BSE.
After being a laggard through the year, ITC shares have witnessed a substantial rally in the recent past, soaring around 10 per cent within a mere 5 trading sessions. But ITC is an under-performer despite its recent gains; the stock has gained 10 per cent this year compared to a 23 per cent rise in the benchmark Sensex.
On the fundamental level, the GST Council meeting held on Friday was a positive for ITC as the council did not make changes in the cess rates on tobacco. And according to technical analysts, ITC has given a break-out on the charts after a long period of consolidation. The stock has broken out of a long-term range of Rs 200-215/220 and the severe congestion zone of Rs 218, accompanied with huge volumes, and thus has a significant legroom on the upside, technical analysts reckon.
The BSE Sensex was trading at 58,935.50, lower by 79.95 points or 0.14 per cent and the NSE Nifty was at 17,529.95, down 55 points or 0.31 per cent at the time.