ITC, Godfrey Phillips rally as government to review ban on sale of loose cigarettes

ITC, Godfrey Phillips India and VST Industries were up 2-5% on the BSE.

Shares of cigarette companies such as ITC, Godfrey Phillips India and VST Industries are trading higher by up to 5% on reports that a Health Ministry proposal to ban sale of loose cigarettes is likely to be put on hold.

ITC has surged 4.4% to Rs 379 on BSE. The stock hit a high of Rs 384 and has seen huge trading volumes. A combined 8.02 million shares changed hands till 1028 hours, as against an average of less than eight million shares that were traded daily in past two weeks.

Godfrey Philips India was trading 5% higher at Rs 619, after hitting a high of Rs 650 in early morning deals on BSE. VST Industries up 2.5% at Rs 1,916. The stock hit a high of Rs 1,992 on BSE.

According to reports, 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. Read report here

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, added report.