Shares of ITC settled for the day at Rs 234.10, up 4.02 per cent from the previous close.
New Delhi: Shares of cigarette makers gained today after price increase for some brands by market leader ITC, which also emerged as the biggest gainer in the 30-share benchmark index, with a rise of over four per cent. Rival Godfrey Phillips India gained even more on the BSE and hit the upper circuit with a surge of 20 per cent.
On BSE, the shares of ITC settled for the day at Rs 234.10, up 4.02 per cent from the previous close. Intra-day, it had hit a high of Rs 234.70. Following an uptick in the counter, the market capitalisation of the company stood at Rs 2,83,761.08 crore.
The shares of ITC settled on NSE at Rs 234.50, up 4.22 per cent from the previous close. It had touched a high of Rs 234.90 in intra-day trade. Godfrey Phillips India breached the upper circuit on BSE, closing 20 per cent up at Rs 999, while on NSE it ended the day 20 per cent up at Rs 999.70, thereby hitting the upper circuit as well.
Golden Tobacco closed 9.01 per cent up at Rs 65.95 on BSE, while on NSE, it settled 10.27 per cent up at Rs 65.50. Another cigarette maker, VST Industries, ended the day on BSE at Rs 2,385.95, up 7.45 per cent from its previous close. On NSE, it closed 6.25 per cent up at Rs 2,355.
"The actual reason for the uptrend in cigarette stocks is short-covering. Demonetisation has affected FMCGs as well as cigarette stocks. Since these companies have raised cigarette prices, the perception has changed," said Kishor Ostwal, CMD, CNI Research.
"There is no negativity about demonetisation and it will add to the profitability of the company," he added.