ITC Extends Decline, Hits Fresh 52-Week Low
ITC shares continued their downward trajectory on Wednesday, June 3, slipping to a new 52-week low during intraday trading.
The stock had ended the previous session with gains of over 1%, but failed to sustain buying momentum as fresh selling emerged. The latest decline further deepens the correction that has been underway for several months.
From its all-time high near ₹500, ITC has now lost more than 40% of its market value, making it one of the most notable laggards within the large-cap universe in 2026.
The prolonged correction has attracted significant attention from market participants, particularly as the company continues to report stable financial performance.
Leveraged Investor Participation Increases Sharply
One of the most notable developments surrounding ITC has been the sharp rise in Margin Trading Facility (MTF) positions.
According to exchange data, leveraged positions in ITC increased substantially to approximately ₹1,794 crore as of June 1, 2026.
This represents an increase of nearly 86.5% compared with the ₹962 crore recorded a month earlier.
The surge suggests that a growing number of investors are using borrowed funds to take positions in the stock despite the ongoing decline in share price.
As a result, ITC has moved significantly higher in the ranking of the most leveraged stocks in the market, becoming the second-largest MTF stock after HDFC Bank.
Strong Financial Performance in Q4 FY26
Despite weakness in the share price, ITC reported positive financial results for the quarter ended March 2026.
The company posted a standalone net profit of ₹5,113 crore, reflecting a 5% year-on-year increase compared to ₹4,875 crore in the corresponding quarter of the previous year.
Revenue from operations witnessed stronger growth, rising 17% year-on-year to ₹21,695 crore from ₹18,495 crore.
Profit before tax also improved, increasing 4% year-on-year to ₹6,694 crore.
The growth in revenue highlights continued demand across ITC’s diversified business portfolio, which includes:
- FMCG products
- Cigarettes and tobacco products
- Hotels
- Paperboards and packaging
- Agri-business operations
Expenses Rise Alongside Revenue Growth
While revenue growth remained healthy, the company also reported higher operating expenses during the quarter.
Total expenses increased to ₹15,656 crore compared to ₹12,873 crore in the same quarter of the previous year.
The increase reflects rising input costs, operational expenses, and investments across various business segments.
Despite the higher expenditure, the company managed to maintain profitability growth, demonstrating operational resilience.
Dividend Recommendation Supports Shareholder Returns
Alongside its quarterly results, ITC’s board recommended a final dividend of ₹8 per share for the financial year ended March 2026.
The dividend recommendation reflects the company’s continued focus on rewarding shareholders while maintaining a strong financial position.
ITC has historically been viewed as a dividend-paying stock, and the latest payout continues that tradition despite challenging market conditions.
Stock Remains Under Pressure in 2026
Although the company has delivered growth in earnings and revenue, investor sentiment toward the stock has remained weak.
As of June 3, 2026, around 11:10 AM, ITC shares were trading near ₹276.25, down approximately 2.47% from the previous closing price.
The stock has:
- Declined more than 12% over the past month
- Fallen over 24% since the beginning of 2026
- Corrected more than 40% from its lifetime high
The sharp decline highlights the gap between operational performance and market valuation trends, with broader market dynamics and investor positioning influencing share price movements.
Rising MTF Exposure Signals Increased Market Interest
The rapid increase in leveraged positions suggests that many investors are actively monitoring ITC’s valuation levels and may be positioning for a potential recovery.
However, higher margin exposure also increases sensitivity to price movements, as leveraged positions can amplify both gains and losses.
The stock’s rise in MTF rankings indicates that ITC remains one of the most actively traded and closely watched large-cap counters in the market.
Conclusion
ITC shares touched a fresh 52-week low on June 3, extending a prolonged correction that has seen the stock lose substantial value from its peak levels. Despite the weak market performance, investor interest through margin trading has increased sharply, with MTF positions rising more than 86% in a month. Meanwhile, the company continues to report growth in revenue and profit, alongside recommending a final dividend for FY26. The contrast between strong operational performance and weak stock market sentiment remains a key theme surrounding ITC’s current market trajectory.
Summary
ITC Limited witnessed renewed selling pressure on June 3, 2026, with its shares touching a fresh 52-week low despite closing higher in the previous trading session. The stock has been under sustained pressure throughout 2026, declining significantly from its record highs and emerging as one of the weaker performers among large-cap stocks. Interestingly, while the share price has continued to fall, leveraged bets through Margin Trading Facility (MTF) positions have surged sharply, indicating growing investor participation through borrowed funds. The company’s latest quarterly results showed growth in revenue and profit, but market sentiment around the stock remains subdued.
Disclaimer:
This article is intended solely for educational and informational purposes. The securities or companies mentioned are provided as examples and should not be considered as recommendations. Nothing contained herein constitutes personal financial advice or investment recommendations. Readers are advised to conduct their own research and consult a qualified financial advisor before making any investment decisions.
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