ITC crash hits sentiment

MUMBAI, December 9: The ITC scrip crashed by Rs 54.50 to Rs 565 in a sell-off triggered by foreign institutional investors FIIs, leading to an all-round fall in share prices. ITC attracted a total turnover of 1,840.75 crore on both the stock exchanges. This means ITC alone attracted nearly 57 per cent of the total turnover of Rs 3246.67 crore on the NSE and Bombay Stock Exchange.

Market sources said foreign funds sold over 28 lakhs shares of ITC. 8220;FIIs generally booked profits in the scrip. It was not deliberate. All were delivery-based transactions. Brokers who were raided by the IT department earlier last week too resorted to heavy selling pressure in a bid to generate funds to meet the tax commitments under the voluntary disclosure of income scheme,8221; sources said.

Rumours that the Singapore government and Capital International were selling ITC shares unnerved the local broking community.

ITC shares adversely affected other frontline pivotals.

However, domestic institutions, including UTI, continued their buying support, arresting the fall in the market.