ITC bounces back

ITC which was one of the worst performing stocks yesterday is today the top gainer on BSE. The stock which had closed yesterday at Rs.295.80, hit an intra day high today at Rs.322.60 and it is now at Rs.321 levels, up around 8.5%.

The stock is up after many brokerage houses upgraded the stock and raised its target price post the Budget yesterday. Though the company will have to hike the prices on the back of excise duty hike, Deutsche Bank has raised the target price to Rs.400/share. Morgan Stanley said that it is also overweight on the stock and set the target price of Rs.400/share.

These upgrades came in because most brokerage houses had expected a much steeper excise duty hike and now they are happy it came lesser at around 10-15%. And many feel that after the sell off over the past few days, it was as such oversold and made a good bargain.