Cigarette stocks in demand; ITC surges over 5% at close
The FMCG major was the top gainer among the 30-Sensex components
Mumbai: Shares of cigarette companies such as ITC and Godfrey Phillips ended with more than 5 per cent gains, following reports that the government proposal to ban sale of loose cigarettes is likely to be put on hold. ITC's scrip jumped 5.44 per cent to settle at Rs 382.75 on the BSE. During the day, it surged 5.67 per cent to Rs 383.60. The FMCG major was the top gainer among the 30-Sensex components.
Shares of Godfrey Phillips rose by 5.08 per cent to Rs 618.75, while that of VST Industries moved up 2.56 per cent to Rs 1,917.55. A Health Ministry proposal to ban sale of loose cigarettes is likely to be put on hold following objections by some MPs, including some Union ministers, and farmers associations against taking drastic regulatory steps.At a meeting called by Union Minister Venkaiah Naidu, Health Minister J P Nadda assured the MPs that he will look into all issues pertaining to tobacco and arecanut growers and industry before taking any policy decision.
India is the second-largest tobacco producer in the world and its export earns the country foreign exchange over Rs 6,000 crore annually.