ITC Ltd. Sees Heavy Volume Amid Continued Downtrend and Market Pressure

Exceptional Volume Amidst Price Weakness

On 9 Jan 2026, ITC Ltd. recorded a total traded volume of 1.84 crore shares, translating to a traded value of approximately ₹623.5 crore. This volume ranks ITC among the most actively traded equities on the day, reflecting intense investor interest. However, the price action was decidedly negative, with the stock closing at ₹337.05, down 1.11% from the previous close of ₹340.90. The day’s trading range was narrow, with a high of ₹341.00 and a low of ₹336.75, the latter marking a fresh 52-week low.

The sustained high volume on a declining price suggests strong selling pressure rather than accumulation. This is further corroborated by the stock’s performance over the past week, where ITC has consecutively declined for seven trading sessions, resulting in a cumulative loss of 16.39%. Such a persistent downtrend on heavy volume typically signals distribution, where institutional investors may be offloading shares.

Technical Indicators Confirm Bearish Momentum

ITC’s current price is trading below all major moving averages — 5-day, 20-day, 50-day, 100-day, and 200-day — underscoring the prevailing bearish momentum. The failure to reclaim these technical support levels indicates weak investor confidence and a lack of short-term buying interest. Additionally, the delivery volume on 8 Jan was 2.42 crore shares, but this figure represents a sharp 60.99% decline compared to the five-day average delivery volume, suggesting falling investor participation in terms of actual shareholding transfers despite high intraday turnover.

Liquidity remains adequate, with the stock’s traded value representing about 2% of its five-day average, allowing for sizeable trade executions without significant market impact. However, the combination of high volume and falling prices points to a market environment dominated by sellers rather than buyers.

MarketsMOJO Downgrades ITC to Sell

Reflecting the deteriorating fundamentals and technical outlook, MarketsMOJO downgraded ITC Ltd. from a Hold to a Sell rating on 29 Dec 2025. The company’s Mojo Score currently stands at 48.0, which is below the threshold for a positive recommendation. The Market Cap Grade is 1, indicating a large-cap status but with limited growth prospects under current conditions.

This downgrade aligns with the stock’s recent price weakness and volume patterns, signalling caution for investors. The FMCG sector itself has been under pressure, with the sector index falling 1.18% on the same day, slightly worse than ITC’s 1.14% decline but more pronounced than the Sensex’s 0.77% drop. ITC’s inline sector performance suggests that company-specific factors are contributing to its underperformance.

Accumulation or Distribution? Signs Point to Distribution

High volume trading days often raise questions about whether institutional investors are accumulating shares or distributing them. In ITC’s case, the persistent price decline coupled with record low levels and falling delivery volumes strongly indicate distribution. The lack of price recovery despite heavy turnover suggests that selling pressure is overwhelming any buying interest.

Investors should note that the stock’s inability to hold above key moving averages and the breach of the 52-week low are classic technical signals of weakening demand. Unless there is a significant change in fundamentals or sector dynamics, the downtrend may continue, potentially inviting further selling.

Valuation and Market Capitalisation Context

ITC Ltd. remains a large-cap entity with a market capitalisation of ₹4,25,421 crore, making it a significant component of the FMCG sector. Despite its size, the current market sentiment is bearish, reflecting concerns over growth prospects and competitive pressures. The stock’s liquidity profile supports active trading, but the prevailing trend suggests that investors are increasingly cautious.

Investor Takeaway and Outlook

For investors tracking ITC Ltd., the current high volume trading activity accompanied by a sustained price decline and a downgrade to Sell rating signals caution. The stock’s technical indicators and volume patterns suggest that the market is undergoing a phase of distribution rather than accumulation. This environment is typically unfavourable for long positions unless a clear reversal catalyst emerges.

Given the stock’s large-cap status and liquidity, it remains a key FMCG player, but the recent trend highlights the importance of monitoring sector developments and company-specific news closely. Investors may consider exploring alternative FMCG stocks with stronger momentum or more favourable ratings to optimise portfolio performance.

Summary of Key Metrics:

• Total traded volume on 9 Jan 2026: 1.84 crore shares


• Total traded value: ₹623.5 crore


• Closing price: ₹337.05 (down 1.11%)


• 52-week low hit: ₹336.75


• Consecutive decline: 7 days, -16.39% returns


• Mojo Score: 48.0 (Sell rating)


• Market cap: ₹4,25,421 crore (Large Cap)


• Trading below all major moving averages


• Delivery volume on 8 Jan: 2.42 crore shares (-60.99% vs 5-day average)

Investors should weigh these factors carefully and consider the broader market context before making investment decisions related to ITC Ltd.

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