366.7 million ITC shares change hands in a single large transaction; stock extends decline to third straight session and remains a major underperformer in 2026
ITC Ltd shares came under heavy selling pressure on Thursday after a large transaction involving nearly 3 per cent of the company’s equity was reported in a single trade. The stock fell more than 3 per cent during the session, extending its decline for the third consecutive trading day.
According to Bloomberg data, around 366.7 million ITC shares, representing approximately 2.93 per cent of the company’s equity, changed hands in the large transaction. The identities of the buyers and sellers were not immediately known, leaving investors to assess whether the transaction represents a strategic stake movement or a portfolio-level exit.
ITC Opens Lower and Slides Towards Day’s Low
ITC shares opened at ₹264 on the NSE before coming under sustained selling pressure. The stock declined to an intraday low of ₹257.20, remaining close to the day's lowest levels during morning trading.
At around 10:35 AM, ITC was trading near ₹257.45, down around 3 per cent.
The stock was also the most actively traded counter on the market by both volume and value, reflecting the unusually high activity surrounding the large transaction.
NSE data showed that more than 22 million shares had changed hands in regular market transactions, with the traded value exceeding ₹576 crore.
Large Transaction Raises Questions Over Seller Identity
The biggest immediate uncertainty for investors is the identity of the parties involved in the transaction.
A trade involving nearly 3 per cent of a large listed company such as ITC is substantial and can attract significant attention because such transactions may involve institutional investors, large shareholders, strategic portfolio rebalancing or other stake adjustments.
Without confirmation of the buyer or seller, however, the transaction alone does not establish the reason behind the movement.
Investors will therefore be watching subsequent exchange disclosures and shareholding-related filings for greater clarity.
ITC Remains a Major Market Underperformer
The large transaction comes against the backdrop of a prolonged period of underperformance for ITC shares.
According to NSE data, the stock has declined around 29 per cent so far in 2026. Over the past year, ITC shares have fallen approximately 36 per cent.
The underperformance is particularly notable when compared with the broader Nifty 50 index, which has declined around 14.1 per cent in 2026 and 10.4 per cent over the past year based on the data available in the report.
The widening gap highlights the pressure that has persisted on the stock despite ITC's diversified business profile and strong presence across consumer-facing categories.
Trading Activity Surges as Investors React
The sharp increase in trading activity suggests that the large transaction has become the immediate focus for market participants.
A high-volume decline can sometimes indicate institutional repositioning, particularly when a large block of shares changes hands. However, the price reaction can also be influenced by expectations surrounding the transaction, particularly if investors interpret the trade as a potential stake sale.
The fact that ITC was among the most actively traded stocks by both volume and value underscores the significance of the transaction for the market.
What Investors Should Watch Next
The next major trigger for ITC shares will be greater clarity regarding the large transaction.
If the trade turns out to be an institutional rebalancing exercise with a new long-term investor absorbing the stake, the initial selling pressure could potentially ease once the transaction is fully digested by the market.
On the other hand, confirmation of a significant shareholder exit could keep sentiment under pressure, particularly given the stock's already weak performance.
Investors will also continue to monitor ITC's operating performance, cigarette volumes, FMCG growth, hotel business performance and the company's capital-allocation strategy.
ITC’s Diversified Business Remains a Key Factor
Despite the recent weakness in the share price, ITC remains one of India's major diversified consumer and business groups, with operations spanning cigarettes, FMCG, hotels, paperboards, packaging and agri-related businesses.
The company's diversified portfolio provides multiple earnings streams, although the performance of individual businesses can vary depending on commodity prices, taxation, consumer demand and broader economic conditions.
For investors, the challenge is to determine whether the current decline represents an attractive valuation opportunity or reflects a more persistent change in market expectations.
Market Outlook
ITC shares are likely to remain highly sensitive to developments surrounding the large transaction in the near term. The ₹257–₹254 zone could become an important area to watch on the downside, while ₹264–₹265 may act as an immediate resistance zone following Thursday's sharp decline.
A sustained recovery would require the stock to regain key resistance levels along with a stabilisation in trading volumes. Conversely, continued selling pressure and confirmation of a major institutional exit could keep the stock under pressure.
For investors, the immediate focus should remain on the identity and nature of the large transaction, subsequent exchange disclosures and the company's underlying earnings trajectory. Given the stock's significant underperformance against the broader market, any change in institutional ownership could become an important signal for ITC's near-term direction.