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The Nifty Bank index closed 0.92 per cent up at 36348.55.

ITC has jumped 21 per cent since February 24 to hit the Rs 250 mark. In the 16 market sessions since then, it has closed in the red in just 4 instances.

“I would be a little cautious about deep cyclicals. Sectors with better visibility in terms of both earnings and multiples have different kinds of risks. We see better possibilities in low beta sectors such as IT, consumer, staples and one can also selectively look at pharma, utilities and upstream oil companies this time. So, there are select pockets where there can be low volatility and one can change the portfolio mix.”

The lender said it will issue Basel III compliant unsecured tier-2 subordinated bonds in the nature of debentures with a base issue size of Rs 150 crore and a greenshoe option to retain oversubscription up to Rs 150 crore, aggregating up to Rs 300 crore in one or more tranches.

“Unlike in the past, where sometimes one could see volume growth if not margin growth or sometimes one could pass on the prices to the consumers and therefore may not see volume growth but at least get better margins, in the next four quarters, both volumes as well as margins will be under pressure. That is why I am using the word pessimism in the case of FMCG companies.”

Initiating a buy call on the stock, Edelweiss suggested a target of Rs 1,859 for the stock, suggesting a potential 20 per cent upside. The stock was up 3 per cent at Rs 2,574 on Tuesday.

The Nifty Realty index closed 1.01 per cent down at 443.1.

The 30-share pack Sensex climbed 696.81 points or 1.22 per cent to close at 57,989.30. Its broader peer NSE Nifty rose 197.90 points or 1.16 per cent to 17,315.50.

The recent stock correction is a reflection of the risk-off on consumertech and a miss on customer addition last quarter, which the brokerage believes isa one-off and will reverse as management focus on growth remainsclear.

The stock traded at a P/E multiple of 58.54, while the price-to-book value ratio stood at 9.07.