ITC shares fall 34% in 2026 as India FPI outflows top Rs 2.5 lakh crore
Foreign portfolio investors held Rs 1.11 lakh crore worth of ITC shares in the June quarter, according to Business Today. The year-to-date stock decline comes amid broader foreign selling from Indian equities, rather than a reported change in ITC's retail operations.
The development
ITC's shares plunged 34 per cent in 2026 as FPI outflows from India crossed Rs 2.5-lakh crore. FPIs held Rs 1.11 lakh crore worth of ITC shares, while Mahindra & Mahindra shares fell 20 per cent.
The numbers
- 34 per cent
- 2026
- Rs 2.5-lakh crore
- Rs 1.11 lakh crore
- 20 per cent
Why it matters to operators and investors
ITC’s 34% decline in 2026 YTD amid Indian-equity FPI outflows exceeding Rs 2.5 lakh crore warrants separating market-flow pressure from company fundamentals.
What to watch next
- Verification of the drawdown period and June-quarter holdings date; a holdings value alone does not establish net ITC-specific selling.
- Changes in FPI share counts and ownership percentages, alongside market-wide flows and domestic institutional purchases.
- FMCG volume growth, margins, advertising expenditure and trade-promotion intensity.
- Changes to investment plans, shareholder distributions or supplier payment terms.
- Tobacco tax or regulatory changes that could create a separate earnings driver.
The counter-case
The headline risks confusing a share-price decline with weakening retail fundamentals. Broad India FPI outflows do not establish the cause of ITC's reported fall; company-specific earnings or valuation concerns could matter more. Without an operating deterioration, this is a weak retail signal.