ITC breaks below 200-day moving average on high valuations
ITC Ltd sinks 3.3 percent, falling below its 200-day moving average for the first time in two months.
Traders cite valuation concerns given ITC is trading at about 30 times of estimated fiscal 2014 earnings, while the BSE Sensex is trading at about 15.5 times, as per Thomson Reuters data.
Shares in the company have been falling for three straight weeks and is down 13 percent since hitting a record high of 380 rupees in late July.
ITC posted on October 25 sales volume growth in the July-September quarter that disappointed investors, sparking downgrades from brokerages including Morgan Stanley.
Other FMCG shares such as Hindustan Unilever Ltd were trading down 1.2 percent while United Breweries Ltd falls 2.4 percent.
The Sensex is trading down 0.7 percent.