ITC gains on hopes proposed rules may have limited impact

Reuters Market Eye - India's biggest cigarette maker, ITC gains 2 pct, recovering from a 5.2 pct fall on Tuesday.

India moves toward ban on loose cigarettes to deter smoking.

Price elasticity, product mix and introduction of smaller pack sizes could limit the impact on volumes for ITC - Jefferies.

The investment bank maintains a "buy" rating and a target of 417 rupees on ITC.

(Reporting by Abhishek Vishnoi)