ITC share price: Market Movers: High margin plan lifts ITC as Zomato hype drives Info Edge

Shares of the tobacco-to-hotels company rose over 1 per cent, outperforming Nifty50, as its annual report showed the company is firming up plans to boost its margin profile. ITC’s annual report showed it has set up a factory exclusively for the export of nicotine and its derivatives, a business that could be potentially high-margin yielding.

Similarly, the company said plans are on the anvil for a boutique hotels brand called Storii, whose aim will be to cater to the new-age travelers in India. Investors were impressed by both the plans and the optimistic tone that the company struck through its 394-page-long annual report.

smiles as Zomato flies

Heading into the IPO, skeptics had suggested that Zomato’s rich valuation could be a turn-off for investors. After all, the company hasn’t yet earned a penny of profit and will be valued at close to $9 billion even before it gets listed on the bourses.

With so much skepticism flying around, Zomato’s IPO book was fully subscribed minutes before the end of the first day of bidding. If that’s not a slap on the face then what is? The strong response to the IPO came as good news for Info Edge, which holds a considerable stake in the online food aggregator, as a likely inflation in Zomato valuation post listing will also boost its own market capitalisation.

Capital market stocks zoom

The hype generated by Zomato IPO and other technology companies that will hit the primary market in the coming months also benefitted capital markets-related companies. Shares of market infrastructure institutions and stock brokerages rose on the view that ab acceleration in participation of retail investors in India’s equity market will be a boon for such companies’ earnings. Stocks like CAMS, , and others rose as much as 16 per cent in the session.