Cigarette Shares Rise; ITC Up 5.7%

Source from:  Mint 12/05/2014

A newspaper reported the govt considered adverse impact on tobacco and arecanut growing farmers before making the decision

Shares of cigarette makers rose on Thursday after the government decided not to go ahead with the Cigarettes and Other Tobacco Products Bill, which would have affected their sales.

The government considered the adverse impact on tobacco-growing farmers of Andhra Pradesh and arecanut growers of Karnataka before making the decision, The Economic Times reported.

Earlier, the health ministry had accepted the recommendations of an expert panel to ban the sale of loose cigarettes and moved a Cabinet note to amend the anti-tobacco law.

ITC Ltd rose as much as 5.7% to Rs.383.60, Godfrey Phillips India Ltd 10.4% to Rs.626.20, VST Industries Ltd 6.5% to Rs.1921.65 and Golden Tobacco Ltd 8% to Rs.39.

The BSE FMCG Index rose as much as 3.2% to 8091.10 points. Enditem