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ITC Stock Surges 2.21% Amid Strong Buying Interest

Posted by : Neeraj Pandey | Wed Feb 18 2026

ITC Stock Surges 2.21% Amid Strong Buying Interest

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ITC share price increased by 2.21% today as investors showed strong buying interest in the stock due to positive market sentiment and continued confidence in the company’s stable FMCG growth and strong cash-generating business model. The stock price of ITC was also supported by defensive buying, as the company is considered a safe haven in volatile market conditions.

Why Did ITC Share Price Rise Today?

Here are several reasons behind the ITC share price incline: 

  • Cigarette Price Increases by the Company

The shares of ITC and other cigarette companies rose as news emerged that companies have increased cigarette prices to offset the effect of increased excise duties in the current year. This helped to ease investor concerns over margins and earnings.

  • Sector-wide Rally in Cigarette Stocks

The stock of ITC today rose sharply along with other cigarette stocks like Godfrey Phillips and VST Industries, as the sector witnessed a rally in the cigarette stock segment due to an improvement in pricing trends and lower concerns about earnings.

  • Positive Investor Sentiment After Tax Adjustment

The stock of ITC witnessed positive investor sentiment due to the pricing approach that may mitigate the impact of a tax increase, thus alleviating initial margin concerns due to changes in excise duties on tobacco products.

  • Outperformance in the Market

Despite market volatility, the stock of ITC outperformed, rising by 2.21% during a trading session where purchases were observed in selected defensive and consumer-related stocks.

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Business Fundamentals Remain Intact

The company is famous for its:

  • Strong cigarette business as a market leader with stable demand and high profitability
  • The company has expanded the brand products to support long-term growth
  • The company has diversified revenue streams, including hotels, agribusiness, and paperboard.
  • Consistent earnings support stability and future expansion
  • It’s known for dividends and long-term value creation.

Analysts are of the view that the basic fundamentals of ITC are still strong, thanks to its cash-surplus cigarette business, expanding FMCG portfolio, and a diversified business presence in the hotel, agri-business, and paperboard sectors. Almost all analysts have a positive outlook on the stock because of its robust pricing power, stable earnings, and dividend payout record, but with a cautionary note on regulatory and tax issues.

Also Read: Nifty Top Gainers & Losers Today 

ITC Share Price Target

ITC is trading at an average price of ₹432.75. The consensus estimate represents an upside of 30.17% from the last price of ₹332.45. According to Wall Street, the 5-day price target for ITC is ₹332.65 with a low forecast of ₹302.75 and a high forecast of ₹385.75. 

ITC Share Price Momentum: Analyst Ratings

  • The average 12-month ITC share price target is around ₹395, with a consensus rating of Hold (a mix of Buy, Hold, and Reduce recommendations).
  • The share price target range for ITC, according to analysts, is between a high of ₹530.00 and a low of ₹314.00, suggesting moderate upside potential.
  • Some brokerage firms are concerned about margin pressures, seasonal demand risks, and rising distribution costs, which is why several analysts are taking a cautious approach.

Analyst recommendations on ITC are a combination of Buy and Neutral recommendations, with targets that reflect both short-term prudence on tax issues and overall optimism on fundamentals and the future.

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What Should Investors Watch?

  • Cigarette pricing & margins
  • FMCG & diversification performance
  • Regulatory and tax changes
  • Quarterly earnings & guidance
  • Valuation and sentiment shifts

Investor Takeaway

ITC’s 2.21% gain is a result of high investor confidence, which is fueled by the company’s stable cigarette business, pricing power, and defensive buying. Nevertheless, investors need to keep an eye on volume movements, tax and regulatory changes, and FMCG growth, which will help them understand whether the current rally will continue.

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