ITC shares recover 2 per cent on hopes of limited impact of proposed single smokes ban

Shares of ITC, the country's biggest cigarette maker, surged 2 per cent, recovering from a 5.2 per cent fall on Tuesday after the government accepted a recommendation to ban the sale of single cigarettes to deter smoking.

Global financial banking firm Jefferies said, "Price elasticity, product mix and introduction of smaller pack sizes could limit the impact on volumes for ITC."

Jefferies maintained its 'buy' rating for the ITC scrip with a target price of Rs 417.

ITC's stock was trading at a Rs 360.15 piece, up 4.45 points (or 1.25 per cent) at 10:35 am on the Bombay Stock Exchange.

(Reuters)