NEW DELHI: Shares of cigarette makers, which jumped after the government on September 18 approved a ban on the manufacturing and sale of e-cigarettes, have moderated a day after the announcement.
While Godfrey Phillips India fell 2.81 per cent to end at `963.10 a piece and ITC fell 1.19 per cent at the close of trade on the BSE.In the previous session, however, shares of Godfrey Phillips India Ltd soared 7.8 per cent, ITC Ltd rose 1.8 per cent, VST Industries Ltd gained one per cent and Golden Tobacco Ltd climbed 4.5 per cent.
VST and Golden Tobacco, however, continued to witness buying for the second consecutive day.
Analysts said the volatility in shares could be because the ban might be a pointer to a tougher stand against tobacco in future. In case of ITC, the reason could be because cigarettes now contribute less than half to its gross sales as the firm is on track to transform itself into a consumer goods major.
The other reasons, experts point, could be because e-cigarettes form just a tiny part of their product range.