To­bacco stks get high on e-cig ban

The Times of India (New Delhi edition) - - Times Business -

Mum­bai: Shares of cig­a­rette com­pa­nies rose sharply af­ter the cabi­net’s de­ci­sion to ban eci­garettes. The scrips gained on the ex­pec­ta­tion that the ban would lead to higher sales of tra­di­tional cig­a­rettes.

Cig­a­rette stocks’s rise was led by the scrip of God­frey Phillips In­dia that jumped 5.5% and Golden To­bacco that climbed 4.7% on the BSE. Sim­i­larly, VST In­dus­tries rose by 3.4% and ITC gained 1%. Some an­a­lysts how­ever said that the ban might be a pointer to a tougher stand against to­bacco in fu­ture. To­bacco shares rose de­spite broader in­dices end­ing flat. The sen­sex closed 0.2% higher at 36,564.

While its ri­val to­bacco com­pa­nies have fo­cused on cig­a­rettes, ITC has di­ver­si­fied the most and gen­er­ates a sub­stan­tial por­tion of its to­pline from FMCG.

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