ITC jumped 4.57% to Rs 290.75 at 11:15 IST on BSE after reports suggested that Goods & Services Tax council finalised lower GST rates for the FMCG products such as soaps, hair oil, edible oil and toothpaste among others.
Meanwhile, the S&P BSE Sensex was up 181.65 points, or 0.60% to 30,616.44.
On the BSE, 14.22 lakh shares were traded on the counter so far as against the average daily volumes of 11.74 lakh shares in the past one quarter. The stock had hit a high of Rs 295.50 in intraday trade, which is also a record high. The stock had hit a low of Rs 280.35 so far during the day.
The stock had hit a 52-week low of Rs 215.40 on 19 May 2016. The stock had underperformed the market over the past one month till 18 May 2017, falling 0.32% compared with the 3.81% rise in the Sensex. The scrip had also underperformed the market in past one quarter, rising 3.65% as against Sensex's 6.91% gains.
The large-cap company has equity capital of Rs 1214.74 crore. Face value per share is Re 1.
Shares of FMCG companies have been cheering on the bourses as the Goods & Services Tax (GST) council has reportedly announced the tax rates for the various items yesterday, 18 May 2017. As per the GST tax rates announced, the impact is very positive for the FMCG companies and signals that the mass consumption items will be taxed lower.
The FMCG companies would witness the huge boost in its consumption since they now need to pay the lower taxes.
Setting the stage for rollout of GST from 1 July, the Centre and states reportedly yesterday, 18 May 2017 decided on rates for specific products which may lead to lower prices for a majority of products of mass consumption.
The idea is to ensure that the impact of GST is not inflationary. Rates on 1,211 items were finalised by the GST council with 81% facing a levy of up to 18%.
There are certain issues which are expected to be thrashed out today, 19 May 2017, when GST Council is also expected to finalise the rates for services. The council will decide on the levy for gold, biscuits, packaged and branded cereals, footwear, bidis and textiles.
The GST tax reform will subsume central and state levies such as excise duty, additional duties of customs, service tax, value added tax, central sales tax, entry tax, octroi and luxury tax and is expected to clean up the messy indirect tax structure.
ITC's net profit rose 5.7% to Rs 2646.73 crore on 4.1% increase in net sales to Rs 9149.31 crore in Q3 December 2016 over Q3 December 2015.
ITC is a diversified company, with 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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