 "Cigarette shares gain; ITC hits 52-week high")
Shares of cigarette companies were trading higher with the sector major ITC hit a fresh 52-week high of Rs 269, up 4% on the BSE on back of heavy volumes.
The finance Minister Arun Jaitley in his Budget proposed the hike in the excise duty on cigars, cheroots and cigarillos to 12.5% or Rs 4006 per thousand, whichever is higher, from 12.5% or Rs 3,755 earlier.
On pan masala products, Jaitley said that excise duty has been increased to 9% from 6%, while for other unmanufactured tobacco raised to 8.3% from 4.2% earlier.
Excise duty for cigarettes hiked between 2.5%-6% is positive for ITC, VST Industries and Godfrey Philips as hike is less than expected, according to Systematix Shares & Stocks, Institutional Equity.
ITC, one of the largest manufacturers of cigarettes, is trading close to its all-time high of Rs 273 hit on February 28, 2015 during intra-day trade.
At 02:46 pm; the stock was up 3.5% at Rs 267 as compared to 1.5% rise in the S&P BSE Sensex. The trading volume on the counter more than doubled with a combined 29.78 million shares changed hands on the BSE and NSE so far.
Golden Tobacco (up 6% at Rs 64), VST Industries (up 3% at Rs 2,474), and Godfrey Phillips India (1.5% at Rs 1,028) other stocks were trading higher, erasing their early morning losses on the BSE.
The finance Minister Arun Jaitley in his Budget proposed the hike in the excise duty on cigars, cheroots and cigarillos to 12.5% or Rs 4006 per thousand, whichever is higher, from 12.5% or Rs 3,755 earlier.
On pan masala products, Jaitley said that excise duty has been increased to 9% from 6%, while for other unmanufactured tobacco raised to 8.3% from 4.2% earlier.
Excise duty for cigarettes hiked between 2.5%-6% is positive for ITC, VST Industries and Godfrey Philips as hike is less than expected, according to Systematix Shares & Stocks, Institutional Equity.
ITC, one of the largest manufacturers of cigarettes, is trading close to its all-time high of Rs 273 hit on February 28, 2015 during intra-day trade.
At 02:46 pm; the stock was up 3.5% at Rs 267 as compared to 1.5% rise in the S&P BSE Sensex. The trading volume on the counter more than doubled with a combined 29.78 million shares changed hands on the BSE and NSE so far.
Golden Tobacco (up 6% at Rs 64), VST Industries (up 3% at Rs 2,474), and Godfrey Phillips India (1.5% at Rs 1,028) other stocks were trading higher, erasing their early morning losses on the BSE.
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