ITC dips as Cabinet ratifies tobacco paper

DALAL STREET SPIKES

Cigarette major ITC fell on sustained selling pressure after the Union Cabinet ratified the Framework Convention on Tobacco Control (FCTC) adopted by the World Health Assembly, the governing body of the World Health Organisation in 1999.

On the BSE, the stock plunged 0.88 per cent to Rs 965.05, off from day's high of Rs 990. More than 70,000 shares traded on the counter through 1473 trades.

Dealers at a local brokerage house said: "The FCTC provides for prohibition on the advertising, promotion and sponsorship of tobacco, price and tax measures to reduce demand for tobacco, protection from exposure to tobacco smoke and regulation of contents of tobacco products."

The two-day fall in ITC follows reports that the government will release rules on a ban on advertising tobacco products in the print and electronic media within eight to 10 days.

The two-day drop precipitates after a surge of 14.9% to a 52-week high of Rs 982 on 10 December 2003 from Rs 854.45 on 28 November 2003.