Bargain hunting props up ITC counter

DALAL STREET SPIKES

Cigarette major ITC and FMGC major HLL witnessed bargain hunting at lower levels. ITC was up 3.34 per cent at Rs 1,337.85, while Hindustan Lever ended 1.42 per cent higher to close at Rs 146.05.

A research head with a domestic broking firm said, "The excise hike is likely to be passed on to the consumers. So it's not going to hit the bottomline if FMGC companies."

The Union Budget has proposed specific rate on cigarette to be raised by about 10 per cent and a surcharge of 10 per cent to be imposed on ad valorem duties on other tobacco products.

However, a leading foreign broking firm has downgraded ITC on concerns of hit in the bottomline with the hike in excise.

The FMGC was the biggest gainer in the Sensex basket at 1089.90, up 2.29 per cent from its previous close.