Stock Of The Day: ITI Slumps As NSE, BSE Question 170% Rally Since November

Shares of ITI Ltd. tumbled nearly 9% on Tuesday after the scrip rallied over 170% since November last year backed by heavy volumes. The cool-off comes after stock exchanges sought clarification regarding the "significant movement in price" on Monday.

The state-owned telecom equipment manufacturer's stock surged nearly 45% in the last two sessions and as much as 55% in the six sessions in 2025. The stock has rallied 62% in the last 12 months.

The rally, backed by significant volumes, began in November at the Rs 220-mark. The stock more than doubled in two months and currently trades near the Rs 490 level.

The stock's surge can be partly attributed to the low public float available for investors. Less than 10% of the total shares are allotted to public shareholders with only 1.94% available for retail investors, according to BSE data.

On Jan. 6, BSE and National Stock Exchange sought clarification on the significant movement in the company's share prices. This was "to ensure that investors have the latest relevant information about the company and to inform the market so that the interest of the investors is safeguarded," the exchanges said.

In response, ITI clarified on Tuesday morning that there are no events that are pending for disclosures that may impact the price or volume behaviour in the scrip.

"The volume of shares traded are purely based on market conditions and the company is not responsible for any increase or fall in volume or share price or any changes in stock market conditions."

The stock comfortably trades above the 14-day simple moving average and a 21-day exponential moving average. The counter finds resistance at Rs 510-level, which is also near a 2-standard deviation above the 14-day moving average.

The momentum indicators still point to a positive bias, which may reverse if the stock closes below yesterday's close of Rs 544 level. The stock opened at a record high of Rs 592.7 apiece on Tuesday and fell to a 10% lower circuit compared to a 0.14% gain in the benchmark Nifty 50 index, as of 10:40 a.m.

The total traded volume so far in the day stood at 2.7 times its 30-day average. The relative strength index was at 70, implying that the stock is overbought.

The company has a market capitalisation of Rs 47,203.50 crore with a free float market cap of Rs 4,720.3 crore. It is noteworthy that the company's price-to-earnings ratio stands at -93.8, indicating that the company is loss-making. The company has reported a net loss for 10-consequtive quarters.