ITC recovers after Monday's slide

ITC rose 2.29% to Rs 321.25 at 14:14 IST on BSE, with the stock gaining on bargain hunting after recent slide triggered by reports that Union health minister has urged Finance Minister to raise tax on cigarettes in upcoming Union Budget for 2014-15.

Meanwhile, the BSE Sensex was up 321.50 points or 1.28% at 25,352.82.

On BSE, so far 5.78 lakh shares were traded in the counter as against average daily volume of 6.84 lakh shares in the past one quarter.

The stock hit a high of Rs 322.40 and a low of Rs 315.90 so far during the day. The stock hit a record high of Rs 386.75 on 16 May 2014. The stock hit a 52-week low of Rs 285.40 on 28 August 2013.

The stock had underperformed the market over the past one month till 23 June 2014, sliding 8.21% compared with Sensex's 1.37% rise. The scrip had also underperformed the market in past one quarter, declining 11.96% as against Sensex's 15.06% rise.

The large-cap company has equity capital of Rs 795.32 crore. Face value per share is Rs 1.

Shares of ITC had dropped 6.5% to settle at Rs 314.05 on Monday, 23 June 2014 on reports that Union health minister Harsh Vardhan has urged Finance Minister Arun Jaitley to raise tax on cigarettes in the upcoming final Union Budget for 2014-15 to deter people from smoking. In a letter to the Finance Minister, Vardhan has sought an increase in tax on cigarettes of all lengths by Rs 2 to Rs 3.5 per stick, as per reports.

ITC's net profit rose 18.2% to Rs 2278.01 crore on 11.8% growth in net sales to Rs 9145.14 crore in Q4 March 2014 over Q4 March 2013.

ITC has a diversified presence in cigarettes, hotels, paperboards & specialty papers, packaging, agri-business, packaged foods & confectionery, information technology, branded apparel, personal care, stationery and other FMCG products. ITC is a market leader in cigarettes.

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