What led to the 7% move in ITC?
I hope it is not the last laugh. I hope it is the start of good times for them. I think for investors holding Vodafone and ITC stocks, the bull market started today. Both the stocks are up in a big way today. Otherwise, everyone is waiting for ITC to move. I hope the move sustains because ITC is a stock which you can justify buying at Rs 200, Rs 250, Rs 300, maybe even Rs 350, just purely on valuation.
During the last couple of sessions, we have been all waiting for the banks and the up move that has happened today. What do you make of that?
Earlier, most of the banks said that they do not have any significant exposure to Vodafone-Idea but now that issue possibly is preventing bankruptcy. That is something which we still need to see, given the debt burden they have. But we are seeing this rally. Axis has a small exposure and they said that they do not have a big exposure. Relative to its size, SBI has a very small exposure. The only bank which relative to its balance sheet has a more sizable exposure to Voda Idea was IndusInd. That is getting reflected in the stock price today. Overall, it is just a rotational move. This is a very euphoric market where one sector or the other picks up every day and that is happening. It is very tough to read anything more into this.