ITC gains as fears of duty hike recede

Shares in ITC gained 0.9 per cent to Rs 300, not far off a record high of Rs 306.50 hit on December 12, 2012, as investors see previous fears of a potential duty on cigarettes as having dragged down the stock excessively.

Shares in the cigarette maker fell 11.7 percent in December on fears of tougher regulations on tobacco products.

Buying in defensive stocks this week on nervousness ahead of the RBI policy review on Tuesday also seen helping.

ITC shares have risen 3.5 percent this week, as of Thursday's close compared with a fall of 0.6 percent in the Sensex.

ITC last week beat estimates with a 21 per cent rise in quarterly profit as cigarette volumes improved after four quarters of stagnant growth.


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