ITC Soars Above ₹500: Shares Surge 10% in Two Days

24 Jul 2024 , 11:02 AM

In the past two days, the multinational conglomerate ITC’s shares have increased by almost 10%, breaking above the ₹500 barrier and setting a new all-time high of ₹510.60 during today’s BSE session.

After the government chose to keep the present tax rates on cigarettes and other tobacco products in place, the shares of ITC had increased by as much as 5% during Tuesday’s trading session.

The GST Council is mainly in charge of taxing tobacco, but the national government also charges cigarettes a National Calamity Contingent Duty (NCCD), which is subject to change each year in the budget.

Cigarettes account for over 45% of ITC’s revenue and more than 80% of the company’s net profit. As such, adjustments to taxes have a big impact on the business’s bottom line.

Additionally, customers would save money as a result of the updated modifications to the new tax regimes, which would benefit FMCG-related stocks like ITC.

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