business · 2026-10-10
US fund trims ITC stake worth Rs 9,395 crore
Photo: via The Economic Times
US investment firm GQG Partners sold ITC shares worth about ₹9,395 crore, part of a broader pullback from Indian stocks in 2026. The firm still manages $156 billion globally, so this looks like reshuffling its bets, not leaving India.
What did GQG sell in ITC, and who bought?
On October 8, GQG Partners sold 36.51 crore ITC shares, a 2.91% stake, for about ₹9,395 crore, at roughly ₹257.35 per share. Fidelity International, a global asset manager, was the biggest buyer, taking 13.4 crore shares, with Indian mutual funds (SBI, Kotak) and foreign banks also purchasing. GQG still holds part of its old stake, so this was a trim, not a full exit.
Why sell a stable firm like ITC?
GQG isn't just selling ITC. Since early 2026, it has trimmed stakes worth about ₹24,400 crore across Indian companies, including Adani firms, while adding JSW Energy and JSW Steel, an energy and a steel company, in the June quarter. That suggests a rotation from consumer staples like ITC into infrastructure bets, not a bet against India. ITC also faces higher taxes on cigarettes and inflation pressures. The specific reason isn't disclosed.
Is GQG cutting losses after ITC fell 30%?
No. GQG sold its ITC stake at an average ₹257.35 per share, after the stock had already fallen sharply. ITC shares are down nearly 30% so far in 2026. This pattern suggests a deliberate rebalancing, not a loss-cutting panic: GQG has trimmed about ₹24,400 crore across Indian holdings this year while adding JSW Energy and JSW Steel. Their reasoning isn't disclosed, but it aligns with rotating out of consumer staples into infrastructure bets.
Why ITC when weaker firms exist?
GQG sees better returns elsewhere. In the same quarter it added JSW Energy and JSW Steel, an energy and a steel company, betting on infrastructure. ITC faces rising taxes on cigarettes and weak sales volumes, and its stock is down 30% this year. So GQG is rotating from consumer staples into India's capital-spending story, not abandoning India.
What stake did GQG hold before?
Before the sale, GQG held a 3.12% stake in ITC through its funds, equal to about 38.99 crore shares, as of the June 2026 quarter. The October 8 block deal cut that by 2.91 percentage points, leaving the firm with a much smaller position but not a full exit from the company.
What changed since GQG backed Adani in 2023?
GQG is rotating, not leaving India. Since early 2026 it has trimmed roughly ₹24,400 crore across Indian firms, including Adani stocks and ITC, while adding JSW Energy and JSW Steel, an energy and a steel company, in the June quarter. Founder Rajiv Jain, who started the firm, hasn't explained the sales, but the buys signal a shift toward infrastructure bets.
Was ITC stock priced for perfection?
Yes, the stock was priced for perfection. GQG sold ITC at an average price of ₹257.35, yet the stock had already fallen 15.7% over six months and nearly 30% year-to-date, closing at ₹254.05. The sale suggests GQG saw the risk-reward as no longer worth it, while buyer Fidelity disagreed. Higher taxes on cigarettes have weighed on earnings, making it a tough bet.
Why is GQG selling Indian stocks despite its $156 billion book?
GQG has trimmed roughly ₹24,400 crore across Indian holdings in 2026, including Adani companies, GMR Airports, an airport operator, and ITC Hotels. Yet it added JSW Energy and JSW Steel in June. This is rebalancing: it raised about ₹1,941 crore and ₹3,054 crore in those new positions while cutting older ones, likely to lock in gains after a strong 2026 run.
Source: economictimes.indiatimes.com