ITC shares fell nearly 3% on Thursday, October 8, becoming the top loser on the Nifty 50 after a large block deal worth ₹9,437 crore took place in the company’s shares. The transaction involved about 36.66 crore ITC shares, representing roughly 2.9% of the company’s outstanding equity, changing hands at an average price of ₹257 per share.
The sharp decline came just days after GQG Partners disclosed that it had reduced its stake in ITC through multiple open-market transactions. The combination of the large block transaction and the recent institutional stake reduction increased selling pressure on the stock, which has already significantly underperformed the broader market in 2026.
ITC Shares Fall Nearly 3%
ITC shares were trading around ₹258 in morning trade on Thursday, down about 2.9%, making the stock the biggest Nifty 50 decliner at that point. The company had a market capitalisation of approximately ₹3.24 lakh crore.
The stock’s decline extended its losses for a third consecutive trading session.
ITC has been under considerable pressure this year. According to the latest market data, the stock was down about 29.1% in 2026, compared with a decline of roughly 13.9% for the Nifty 50 over the same period.
ITC Stock: Key Numbers
| Metric | Latest figure |
|---|---|
| Block deal value | ₹9,437 crore |
| Shares involved | 36.66 crore |
| Approx. equity involved | 2.9% |
| Average block-deal price | ₹257 |
| Morning ITC price | Around ₹258 |
| 2026 stock decline | About 29.1% |
| Market capitalisation | About ₹3.24 lakh crore |
The size of the transaction makes it one of the most significant individual block deals involving an Indian large-cap stock in recent trading sessions.
What Happened in the ₹9,437-Crore Block Deal?
The block transaction took place in the pre-open block deal window, with approximately 36.66 crore ITC shares changing hands.
At an average price of ₹257 per share, the transaction was worth approximately ₹9,437 crore. The identities of the buyers and sellers were not immediately disclosed.
The transaction itself does not necessarily mean that ITC’s business fundamentals have changed.
Block deals are often used by large institutional investors to transfer significant holdings without executing the entire position through the regular market. However, when a transaction is large and occurs at a discount to the prevailing market price, it can create short-term selling pressure.
Reuters reported that about 4.4 million ITC shares changed hands across 12 block deals, with discounts ranging from 0.6% to 3.1% to the previous close.
GQG Partners’ ITC Stake Sale Adds to Investor Concerns
The block deal comes shortly after GQG Partners disclosed a reduction in its ITC holding.
GQG Partners LLC sold 3.97 crore ITC shares through multiple on-market transactions between May 28, 2025, and October 5, 2026. Following the transactions, the combined shareholding of GQG Partners and persons acting in concert declined to 3.17% from 3.48% of ITC’s total voting capital.
The reduction was spread across several investment vehicles.
Goldman Sachs Trust II — Goldman Sachs GQG Partners International Opportunities Fund reduced its holding to 21.16 crore shares, or 1.69%, from 24.40 crore shares, or 1.95%.
GQG Partners International Equity CIT also reduced its holding to 2.52 crore shares, or 0.20%, from 2.85 crore shares, or 0.23%.
GQG Partners’ ITC Holding
| Metric | Before | After |
|---|---|---|
| Combined GQG/PAC holding | 3.48% | 3.17% |
| Change | — | -0.31 percentage point |
| Shares sold | — | About 3.97 crore |
| Main fund holding | 1.95% | 1.69% |
| GQG International Equity CIT | 0.23% | 0.20% |
The disclosure was made under Regulation 29(2) of the SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011.
Why the Block Deal Matters for ITC Investors
The immediate concern for investors is supply.
When a large institutional investor or group of investors sells a significant number of shares, the additional supply can pressure the stock price, particularly if the transaction is executed at a discount.
In ITC’s case, the block deal involved nearly 3% of the company’s outstanding equity.
That is large enough to influence short-term sentiment even if there is no corresponding deterioration in the company’s underlying operations.
The market is therefore likely to distinguish between the technical impact of the block transaction and ITC’s fundamental business performance.
ITC Has No Promoter Shareholding
Another important feature of ITC’s ownership structure is the absence of a conventional promoter holding.
The company’s entire equity is held by public shareholders. Among its major institutional investors, the Specified Undertaking of the Unit Trust of India held 7.78% at the end of the June quarter, while mutual funds collectively held 16.5%. Life Insurance Corporation of India held 16.3% as of June 30.
This structure means that institutional investors can have a particularly significant influence on ITC’s share-price movements.
Major ITC Shareholders
| Investor category | Stake |
|---|---|
| SUUTI | 7.78% |
| Mutual funds | 16.5% |
| LIC | 16.3% |
| GQG Partners and PACs after recent reduction | 3.17% |
| Promoter holding | None |
Because ITC has no promoter group, changes in large institutional positions can attract considerable market attention.
ITC Stock Has Underperformed the Nifty
The latest decline adds to a difficult year for ITC shareholders.
The stock has fallen approximately 29.1% in 2026, while the Nifty 50 has declined about 13.9% during the same period.
This means ITC has underperformed the benchmark by a significant margin.
The weakness has occurred despite ITC’s position as one of India’s largest diversified consumer companies, with businesses spanning cigarettes, FMCG, hotels, paperboards and other segments.
The stock’s performance is therefore being influenced by several factors rather than the block deal alone.
Cigarette Business Remains a Key Investor Focus
ITC’s cigarette business remains central to its earnings and valuation profile.
The company has also been in focus following another round of price increases across select cigarette brands, according to market reports.
For investors, the key question is how price increases affect volumes, revenue and profitability.
Cigarettes remain a highly cash-generative part of ITC’s business, but the segment is also exposed to taxation, regulation and changes in consumer behaviour.
These factors can influence the stock independently of institutional buying and selling.
What Could Happen After the Block Deal?
The immediate share-price reaction does not necessarily indicate a long-term change in ITC’s valuation.
Once the block transaction is absorbed by the market, investors are likely to return their focus to earnings, cigarette volumes, FMCG performance, hotels, paperboards and capital allocation.
The identity of the buyer could also become important.
If the buyer is a long-term institutional investor, the transaction could eventually be viewed as a transfer of ownership rather than a fundamental negative signal. Conversely, continued selling by large institutions could keep supply pressure on the stock.
What Investors Should Watch
Several factors could determine ITC’s next move:
1. Buyer and Seller Disclosure
The identities of the parties involved in the ₹9,437-crore transaction could provide clues about whether the deal represents a portfolio rebalancing exercise or a broader change in institutional positioning.
2. Further Institutional Selling
Additional large transactions could create continued pressure on the stock.
3. ITC’s Quarterly Performance
Investors will ultimately focus on whether the company’s operating businesses continue to generate strong cash flows.
4. Cigarette Volume Growth
Volume performance will remain important because the cigarette business contributes significantly to ITC’s profitability.
5. FMCG and Hotels Growth
The performance of ITC’s non-cigarette businesses will remain important to the company’s long-term diversification strategy.
The Bigger Picture
The ₹9,437-crore block deal has created a significant short-term overhang for ITC shares, particularly because it followed GQG Partners’ disclosure of a stake reduction. The 36.66 crore shares involved in the transaction represented approximately 2.9% of ITC’s outstanding equity, making the deal large enough to materially affect trading sentiment.
However, the transaction should not automatically be interpreted as a deterioration in ITC’s business fundamentals. The buyers and sellers in the block deal were not immediately identified, and large institutional transactions can result from portfolio rebalancing, liquidity requirements or changes in investment strategy.
For ITC shareholders, the longer-term story will depend on the company’s earnings, cash generation, cigarette business performance and progress across its diversified businesses.
Looking Ahead
In the near term, ITC shares could remain sensitive to further institutional transactions and any additional disclosures related to the ₹9,437-crore block deal. Investors will also watch whether the stock stabilises after the large transfer of shares or whether additional selling creates further pressure.
Over the longer term, the focus is likely to shift back toward ITC’s operating performance. The company’s ability to maintain cigarette profitability while expanding its FMCG, hotels and other businesses will be more important for fundamental investors than the short-term impact of a single block transaction.
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