Market Movers: ITC’s once-in-a-blue-moon move brings more joy than Zomato listing

On a day that was earmarked for Zomato and the dawn of the new age for the Indian capital market, ITC’s stock decided it wanted to steal the thunder of the new kid in town.

The index heavyweight (okay more like the index middle-weight) surged 2.5 per cent in today’s trade, which was apparently enough to overshadow 65 per cent listing day gains seen by Zomato, if ITC shareholders are to be believed. Why? Well because ITC does not do a 2 per cent move.

The last time the stock moved more than 2.5 per cent on a single day was on May 14. Back then Italy was not the European Champions, there was no community transmission of Covid in India, Harsh Vardhan was still the health minister and ITC was among the top 10 Nifty stocks.

The rarity of the feat is what makes today’s move such a special day in the lives of ITC investors. We mean today is a “dear diary” moment for 2.6 million retail shareholders of the company.

History being made

On account of fairness, we also need to celebrate the day for what it meant to not only Zomato, but India’s startup ecosystem. Zomato listed with a premium of more than 53 per cent and went on to add another 8 per cent to its opening price.

The successful listing of a new-age Internet startup despite the skepticism that its IPO met with from who’s who of Dalal Street is commendable. It is also a ray of hope for thousands of young startup entrepreneurs in India who may now look at the Indian capital market as a place that is welcoming of their ambitions even if they don’t satisfy their 1960s valuation models. For what it is worth, even ITC can’t smoke away that fact from history.

End of Days?

While today was a momentous day for the investors of ITC and Zomato, it was a somber one for shareholders of Vodafone Idea. The Supreme Court’s rejection of a petition filed by the company and

to recalculate their respective AGR dues will feel like a death punch to Vodafone Idea.

With the company’s auditors suggesting that it is running out of cash to keep itself on its feet, paying off the government’s dues will feel an uphill task now. The implications of the SC’s dismissal are also grave in terms of raising new funds as investors would have liked the certainty of lower repayments to the government.

While the company is focused on raising more than $2 billion from investors, the possibility of Vodafone Idea going under is rising every day and investors can smell it. Shares of the company tanked more than 9 per cent in trade.