 "Cigarette shares dip on government plan to ban FDI in tobacco sector")
Shares of cigarette makers such as ITC, Godfrey Philips, Golden Tobacco and VST Industries have dropped by up to 12% on the BSE in early morning trade on reports that the government is working on a proposal to completely ban foreign direct investment (FDI) in the tobacco sector.
Among the individual stocks, Godfrey Philips India has dipped 12% to Rs 993 on the BSE. Golden Tobacco down 5% to Rs 39, followed by VST Industries (3% at Rs 1,595) and ITC (3% at Rs 312) on the BSE in intra-day trade.
At 09:23 am, the S&P BSE Sensex was down 0.42% or 107 points at 25,571.
After making it mandatory to carry larger pictorial warnings on cigarette packets, the government is now working on a proposal to completely ban FDI in the tobacco sector, the PTI report suggests.
According to sources, the Commerce and Industry Ministry is proposing to even ban FDI in licensing for franchise, trademark, brand name and management contract in the sector, added report. CLICK HERE TO READ FULL REPORT.
Among the individual stocks, Godfrey Philips India has dipped 12% to Rs 993 on the BSE. Golden Tobacco down 5% to Rs 39, followed by VST Industries (3% at Rs 1,595) and ITC (3% at Rs 312) on the BSE in intra-day trade.
At 09:23 am, the S&P BSE Sensex was down 0.42% or 107 points at 25,571.
After making it mandatory to carry larger pictorial warnings on cigarette packets, the government is now working on a proposal to completely ban FDI in the tobacco sector, the PTI report suggests.
According to sources, the Commerce and Industry Ministry is proposing to even ban FDI in licensing for franchise, trademark, brand name and management contract in the sector, added report. CLICK HERE TO READ FULL REPORT.
