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Long bets grow in India's ITC on expected rally

Source : REUTERS
Last Updated: Thu, May 09, 2013 07:13 hrs
A man talk on his mobile phone as he walks past an ITC office building in Kolkata

Investors are placing long positions on equity futures of India's ITC Ltd, dealers say, in an indication they expect a rally in shares of the cigarette maker.

ITC equity futures have seen 8,475 contracts added, most of which are long positions, according to the traders.

Sunil Kumar Arora, futures and options head at Kantilal Chhaganlal Securities, said the increase in long bets could indicate investors are expecting good news from the cigarette maker, adding the stock is also attractive because of the "huge reserves in its balance sheet".

ITC is down 0.2 percent at 0636 GMT, after earlier hitting its all-time high of 345.95 rupees. The stock has gained 4.2 percent since the start of May as of Wednesday's close, in line with a broad-based rally in Indian stocks.

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