Reuters Market Eye - Shares in ITC Ltd
ITC officials were not immediately available for comment.
According to UBS, ITC has raised the price for the brand to 58 rupees from 55 rupees for a pack of 10 cigarettes.
The bank says the price increase will not impact volumes but could lead consumers to upgrade to Gold Flake King size cigarettes given the price difference between the two would be reduced to 1 rupee.
Any shift would provide ITC with a "much better value positioning", UBS says.
UBS maintains ITC as a top pick with a "buy" rating and a target price of 400 rupees.
Dealers also add that some value buying was also seen after ITC shares fell 4.6 percent in June, underperforming India's benchmark index 1.8 percent fall in the same period.
(Reporting by Abhishek Vishnoi)
