ITC News: ITC Hotel share prices continue to drop, reaching a 5% lower circuit yesterday, and thus it is important to get more information on the same for investors. Let’s decode the whole ITC news through a brief overview of ITC and its shares.
Overview of ITC
ITC Hotels, one of India’s fastest-growing hotel groups, is a pioneer in green hoteliering, with all of its premium luxury hotels earning LEED® Platinum Certification. The leading luxury chain of hotels, ITC Hotels, was established in 1975 and has since come to represent Indian hospitality. Using the advantages of ITC companies’ excellent environmental policies, ITC Hotels founded the idea of “Responsible Luxury” in the hospitality sector. Responsible Luxury embodies a philosophy that combines cutting-edge green design features with top-notch eco-friendly practices to provide the highest level of luxury in the most environmentally friendly way.
ITC News of Hitting the Lower Circuit: How it Happened?
ITC Hotels Ltd.’s equity shares went public on Indian SE (stock exchanges) yesterday, 29th January. Cigarette-to-FMCG conglomerate ITC Ltd. demerged to form ITC Hotels. Shares of ITC Hotels were trading at ₹188 each on the BSE and ₹180 each on the NSE. Although it was listed at a price almost 30% below the discovery price, the stock outperformed analysts’ forecasts. ITC Hotels found that the NSE and BSE had prices of ₹260 and ₹270 per share, respectively. The stock, however, fell during the first session and finished much lower. ITC Hotels’ stock closed 3.53% lower on the NSE and 5% lower on the BSE circuit.
What Should the Investors Do? ITC News!
Now that the shares have hit the lower circuit and the ITC news has gone viral, investors should wait for the next market lift, as ITC has strong financials, and the investors need not worry about such dips. Although the market is full of uncertainties, one can practice strategies like stop-loss orders. Since stop-loss orders sell your shares automatically when the price hits a preset level, they can help you restrict losses if a specific stock strikes its bottom circuit.
A major negative event affecting the stock is usually indicated by reaching the lower circuit, and after trading restarts, the price may decline much more. Though reaching a lower circuit is not something unusual, and so investors can also keep an eye on the next trading session and ITC news.
Final Verdict
It has been a tumultuous time since ITC Hotels went public on stock exchanges, as the stock initially fell to the lower circuit. This was mostly because selling pressure resulted from the stock opening much lower than its price detected. However, ITC Hotels is a reputable company with a significant following in the industry, and this decline can be a purchasing opportunity if one dreams of a future investing horizon for long and thinks the Indian hotel sector has a lot of promise.
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Disclaimer: Demat Dive is not giving any buying advice on any stock. Consult a SEBI-registered advisor before investing anywhere.