Equity Alert: ITC sheds gains as funds sell; Q1 results eyed

[K.Karthik Raja]

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Equity Alert: ITC sheds gains as funds sell; Q1 results eyed
MUMBAI--1:55PM--ITC shares slipped into the red, down 0.5% at
197.55
rupees, on selling by funds, after gaining over 2.0% in early trade,
dealers
said.
"The share was earlier up over 2.0% on value and defensive buying
after
correcting more than 11.0% over the past one month," a dealer said.
Total
traded volume on National Stock Exchange so far today was 2.99 mln
shares.
In the futures market, the stock was up 0.1% over Friday's close,
at 195 rupees, with open interest position of 2.37 mln shares.
The next trigger for the stock will be its first quarter (Apr-Jun)
earnings, the dealer said.
"The stock (ITC) has corrected a bit, and at current levels it is
an
'accumulate'," said Anand Shah of Angel Broking, who has set a price
target of
220 rupees.
He said the brokerage would take a further view on the stock after
its
first quarter earnings, to see the impact of closure of the non-filter
cigarette business on margins and sales volume.
Unmesh Sharma of Macquarie Securities estimates ITC's margins to
improve
because of a better sales mix but volume in the first quarter may
decline
by 8-10%.
"For the full year (2008-09, Apr-Mar), after accounting for an
increase
in market share in filters and improved sales mix, volume sales may
fall by
just 4-5%," Sharma said, maintaining 'out-performer' rating on the
stock with
a price target of 260 rupees.