Godfrey Phillips, ITC fall up to 3 pc after rallying in previous trade

Shares of cigarette makers Godfrey Phillips and ITC on Thursday fell up to 3 per cent after a significant jump in the previous session as the Cabinet approved an Ordinance to ban electronic cigarettes.

Shares of Godfrey Phillips India fell 2.81 per cent and ITC 1.19 per cent at the close of trade on the BSE. During the session, Godfrey Phillips and ITC fell up to 3.5 per cent and 1.43 per cent, respectively.

In contrast, two other tobacco stocks continued to witness buying for the second consecutive day, with Golden Tobacco climbing 4.19 per cent and VST Industries 0.21 per cent.

On Wednesday, cigarette stocks gained up to 5.5 per cent after the Cabinet approved the Ordinance.

The government on Thursday approved the Ordinance to ban e-cigarettes, making the production, import, export, transport, storage, sale or advertisements of such "alternative" smoking devices a cognisable offence attracting jail term and fine.

E-cigarettes promoting trade bodies, users and other stakeholders have slammed the government's move to ban "alternative" smoking device through the Ordinance route, alleging it was a "draconian" step taken in haste to protect the conventional cigarette industry.

Association of Vapers India, an organisation representing e-cigarette users, also alleged that it is a black day for 11 crore smokers in India who have been deprived of safer options.