ITC fell 0.5% to Rs 361.50 at 15:15 IST on BSE as fresh details emerge about the proposed anti-smoking legislation.
Meanwhile, the S&P BSE Sensex was up 76.43 points or 0.27% at 28,462.62.
The stock fell on heavy volumes. On BSE, so far 22.77 lakh shares were traded in the counter as against average daily volume of 3.90 lakh shares in the past one quarter.
The stock was volatile. The stock lost as much as 2.28% at the day's low of Rs 355 so far during the day. The stock rose as much as 0.19% at the day's high of Rs 364 so far during the day. The stock had hit a record high of Rs 386.75 on 16 May 2014. The stock had hit a 52-week low of Rs 307.80 on 5 December 2013.
The stock had underperformed the market over the past one month till 26 November 2014, advancing 3.65% compared with the Sensex's 5.72% rise. The scrip had also underperformed the market in past one quarter, gaining 3.24% as against Sensex's 7.35% rise.
The large-cap company has equity capital of Rs 798.68 crore. Face value per share is Re 1.
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According to reports, apart from banning sale of loose cigarettes and raising the minimum age of smoking to 25, the note on the proposed anti-smoking legislation sent to Cabinet suggests several other measures. These include banning designated smoking zones in hotels and airports, banning tobacco advertising on Internet and mobiles, discouraging efforts by tobacco companies to earn goodwill through CSR, dropping nicotine/tar details on cigarette packs lest they may appear to users as 'safe', and setting up special courts to try offences related to anti-tobacco law among others, reports stated. The proposals were drafted by a committee appointed by former health minister Harsh Vardhan, reports added. Its suggestions have been accepted by the incumbent minister, JP Nadda, who has forwarded the same to the Cabinet for approval, reports suggested.
Health Minister J P Nadda stated in a written reply in the Rajya Sabha on Tuesday, 25 November 2014, that the Ministry of Health & Family Welfare has accepted recommendations of a committee that has suggested prohibition on sale of loose or single stick of cigarettes, increasing the minimum legal age for sale of tobacco products, increasing the fine or penalty amounts for violation of certain provisions of the Cigarettes and Other Tobacco Products (Prohibition of Advertisement and Regulation of Trade and Commerce, Production, Supply and Distribution) Act, 2003 (COTPA), as well as making such offences cognizable. In this regard, a draft note for Cabinet has been circulated for Inter-Ministerial consultation.
ITC's net profit rose 8.7% to Rs 2425.16 crore on 14.8% growth in net sales to Rs 8930.32 crore in Q2 September 2014 over Q2 September 2013.
ITC has a diversified presence in cigarettes, hotels, paperboards & specialty papers, packaging, agri-business, packaged foods & confectionery, information technology, branded apparel, personal care, stationery and other FMCG products. ITC is a market leader in cigarettes.
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