Smoking prohibition clouds ITC

DALAL STREET SPIKES

Cigarette major ITC witnessed selling pressure ever since the Act banning tobacco product advertisements became effective on May 1, 2004.

The stock, in today's trading, lost 1.95 per cent to close at Rs 1,030 after touching the day's low of Rs 1,020. The counter witnessed a volume of 54,217 shares on the BSE.

ITC has lost 4.3 per cent in the four trading sessions to the current Rs 1,030, from a recent high of Rs 1,076.15 on May 3, 2004. Analysts said the increased restrictions on smoking effective from May 1 is expected to hit sales.

Restrictions on tobacco advertising became effective from May 1, 2004, in terms of the Cigarettes and Other Tobacco Products (Prohibition of Advertisement and Regulation of Trade and Commerce, Production, Supply and Distribution) Act, 2003.

Already there are restrictions in place on smoking in public places.