ITC Hotels is experiencing a remarkable surge in its share price, recently achieving an impressive 52-week high of Rs 204.40 just before the market closed on Friday. Although the stock concluded the day at Rs 194 per share—marking a nearly 6% increase—the momentum indicates a strong upward trend for this newly listed hospitality player.
Since its debut in January 2025, ITC Hotels has captured the attention of investors, boasting nearly 18% growth since its initial offering. Several factors are driving this bullish sentiment in the hotel and tourism sector.
Factors Driving ITC Hotels’ Share Price Surge
1. Resurgence in Hospitality Stocks
As the festive and vacation season approaches, the hospitality sector is regaining its luster. ITC Hotels, being a recent player in the market, is emerging as one of the top contenders for investment as investors seek opportunities in this thriving industry.
2. Inclusion in the FTSE All-World Index
Recent reports have confirmed that ITC Hotels is now part of the FTSE All-World Index, with a weightage of $52.6 million. This inclusion is expected to attract significant capital inflows, estimated between $1.4 billion and $1.6 billion, into the broader Indian equity markets due to the index rebalancing.
3. Growth Potential Post-Demerger
The strategic spin-off of ITC Hotels from ITC was aimed at unlocking shareholder value, and the market has responded positively to its standalone listing. The stock made its debut at Rs 188 on the BSE and Rs 180 on the NSE, reflecting an optimistic outlook from investors.
ITC Hotels’ Performance Snapshot
In just five days, ITC Hotels has seen its share price increase by 15%, with a notable 19% rise over the last month. Year-to-date, the stock has grown by 13%, showcasing its robust performance in a competitive market.
In conclusion, ITC Hotels is poised for a bright future as it continues to capitalize on favorable market trends and strategic positioning. Investors are keenly watching this stock, eager to be part of its growth journey in the hospitality sector.