Stocks of cigarettes manufacturers gain 1-2% after less than expected excise duty hike

Indian and foreign analysts were expecting a substantial increase in excise duty on cigarette

Cigarettes manufacturer ITC, Godfrey Phillips and Golden Tobacco shares gained more than 1 percent intraday on July 5 as the government's excise duty hike on cigarettes was less than expectations.


Finance Minister Nirmala Sitharaman in her first Union Budget speech said the excise duty on other than filter cigarettes of length not exceeding 65 millimeters and exceeding 65 millimeters but not exceeding 70 millimeters increased to Rs 5 per thousand pieces against nil earlier.

Excise duty on filter cigarettes of length (including the length of the filter, the length of filter being 11 millimeters or its actual length, whichever is more) not exceeding 65 millimetres, exceeding 65 millimetres but not exceeding 70 millimetres and exceeding 70 millimetres but not exceeding 75 millimeters also increased by Rs 5 per thousand pieces against nil.

Indian and foreign analysts were expecting a substantial increase in excise duty on cigarette, so this is very small compared to excise duties in the US and European countries.

"Hence this increase is not very substantial against higher street expectations and in addition, there is a relief that there won't be any tax on cigarettes at least for this year," Shailendra Kumar, CIO at Narnolia Financial Services told Moneycontrol.

At 1451 hours IST, ITC was up 1.08 percent at Rs 280.70, Godfrey Phillips was up 0.3 percent at Rs 834.60 and Golden Tobacco gained 0.32 percent at Rs 31.60 on the BSE.

For taking 2 days free trial and Stock Market Tips with more than 90% accuracy click here MCX Tips

Comments

Post a Comment

Popular posts from this blog

Technical Classroom: How to use Fibonacci Retracement Levels in stock trading

Image
Fibonacci retracement is a method of technical analysis for determining support and resistance levels A Fibonacci retracement is a popular tool among technical traders and is based on some key numbers. The origins of the Fibonacci series can be traced back to the ancient Indian mathematic scripts, with some claims dating back to 200 BC. However – in the 12th century - Leonardo Pisano Bigollo, an Italian mathematician who was known to his friends as Fibonacci, discovered Fibonacci numbers. It is a popular tool that technical traders use to help identify price levels for transactions, stop losses or target prices. These retracement levels also provide support and resistance levels for a stock. However, it really becomes most effective when confirming signals or conditions identified by additional technical analysis tools. Fibonacci Retracement is a method of technical analysis for determining support and resistance levels. It is named after the use of the Fibonacci sequ...
Read more

Veto Switchgears jumps 5% on realisation of unsecured loan

Image
Veto Switchgears had given unsecured loan to its wholly owned overseas subsidiary Veto Overseas Private F.Z.E. Veto Switchgears and Cables shares rallied 4.8 percent intraday on June 14 after realization of unsecured loan from a subsidiary. "We realized an amount of $1 million against an unsecured loan on June 13," the wires & cables and electrical accessories manufacturer said in its filing. Veto Switchgears had given unsecured loan to its wholly owned overseas subsidiary Veto Overseas Private F.Z.E. The stock climbed 10 percent in the last 15 sessions. At 13:13 hours IST, it was quoting at Rs 66.75, up to Rs 1.10, or 1.68 percent on the BSE. G et a 2 days free trial in Stock Market Tips and MCX Tips  
Read more

Trade Setup for Wednesday: Top 15 things to know before Opening Bell

Image
Rohit Singre of LKP Securities said index formed bullish candle on daily chart suggesting some more upside before expiry. The market rebounded sharply on June 25 after a correction in the previous two consecutive sessions. Overall though it has remained in a 200-point range on the Nifty for the last several sessions. The buying was across sectors with Nifty Metal rising most with 1.7 percent gain followed by PSU Bank (up 1 percent). The BSE Sensex gained 311.98 points to close at 39,434.94 while the Nifty 50 climbed 96.80 points to 11,796.50 and formed bullish candle resembling a Bullish Engulfing kind of pattern on daily charts. "Index has managed to sustain above previous day's high forming Bullish Engulfing candlestick pattern indicating a positive bias to continue towards 11,980-12,070 levels, unless it trades below 11,720 levels," Shabbir Kayyumi, Head of Technical Research, Narnolia Financial Advisors told Moneycontrol. He said any decisive...
Read more