Why Are ITC Shares Shooting Up Today?

Kolkata-based conglomerate ITC Ltd. is seeing its shares spike after Minister of Finance and Corporate Affairs Nirmala Sitharaman presented this year’s Union Budget.

ITC shares briefly plunged after Sitharaman announced that the government is planning to hike the national calamity contingent duty (NCCD) on specified cigarettes to 16%.

The negative sentiments seem to have flipped soon after, given that the announced hike is actually below the NCCD predicted by analysts.

Flip in sentiments noted during the budget presentation in ITC stock. Chart, courtesy of TradingView

The hike in NCCD was anticipated by Jefferies analysts ahead of the budget presentation at a much higher rate of 33%, which would have translated into a 3.5% added tax on affected cigarettes.

The actual announced hike of 16% is anticipated to only translate into an added tax of 2% to 2.5%, according to CNBC-TV18 estimates.

The new NCCD rates applicable from February 2, 2023 on different types of cigarettes

Price Action: ITC shares traded 1.5% higher at ₹357.85 at the time of writing on Wednesday.

Don’t Miss: Live Blog: Nirmala Sitharaman Presents Union Budget 2023, New Tax Regime Announced

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Posted In: MoversTrading IdeasBudget 2023cigarettesITCNirmala Sitharaman