If they were to change their stance to neutral -which means allocating funds in weight as ascribed in the benchmark fund -the ITC stock could gain. To be sure, ITC's stock has already been re-rated to 28 times its FY19 earnings , compared with 20 times, in the past one year.FPIs hold 20.08% stake in ITC, based on the company's March filing. This translates to $12.35 billion (based on the current price) of FPI holding in ITC, compared with total FPI AUM of $388.8 billion. Analysts believe that ITC may take price cuts of 3-4% if the entire benefit of the GST is passed to consumers. The price cut will help ITC gain share from the illegal market.

Source: Economic Times July 12, 2017 03:00 UTC