ITC down 3% as govt proposes ban on sale of loose cigarettes

ITC shares ended over 3 per cent lower today after the government yesterday proposed amending anti-smoking law and other radical changes, including ban on sale of loose cigarettes.
ITC's scrip fell by 3.29 per cent to end at Rs 348.40 on the BSE. During the day, it lost 3.92 per cent to settle at Rs 346.10.
Shares of Godfrey Phillips India were down by 2.47 per cent to Rs 560.25 and VST Industries shed 1.37 per cent to close at Rs 1,898.30.
Brushing aside opposition, the government had yesterday moved to amend the anti-smoking law and proposed radical changes, including ban on sale of loose cigarettes and raising the minimum age of a person buying tobacco products to 21 years from existing 18.

It has also proposed raising of fine to Rs 1,000 from Rs 200 on smoking in public places as well as recommending removal of designated smoking zones in hotels and restaurants.
These are some of the major recommendations in the Cigarettes and Other Tobacco Products (Prohibition of Advertisement and Regulation of Trade and Commerce, Production, Supply and Distribution) (Amendment) Bill 2015, which were put out by the Health Ministry yesterday to seek suggestions from the public.