ITC attracts huge backwardation

MUMBAI, March 7: Having breached the crucial barrier of Rs 700, the ITC counter is back in action. Though market participants maintain their stand on quot;speculating in ITC is injurious to wealth,quot; the carryforward session has a different story on the counter.

The stock has attracted the highest backwardation of Rs 34.99, for a total volume of 7.87 lakh shares at the hawala price of Rs 705. In the kerb market the stock was trading at a premium of over 3 per cent at Rs 718. ITC closed with a backwardation of Rs 13 for a huge outstanding quantity of over 12 lakh shares.

quot;The higher backwardation charges attracted by the speculative counters reflects the over sold positions in the market,quot; said a BSE broker.