Cigarette stocks fall amid reports of tough tobacco policy

MUMBAI: Shares of cigarette companies ITC, Godfrey Phillips India and VST Industries fell by as much as 6 per cent amid media reports that the government may tighten norms to put check on smoking.

Stocks of Godfrey Phillips slumped 6.09 per cent to Rs 2,990, while ITC was down by 1.85 per cent to Rs 351.05 and VST Industries lost 3.58 per cent to Rs 1,625.05 on the BSE.

According to reports, the government is considering a proposal to ban sale of loose cigarettes. The health ministry has also proposed to raise age limit for consumption and increasing the fine for smoking in public spaces to Rs 20,000 from Rs 200, apart from making this a cognisable offence, it said.

In the broader market, the BSE benchmark Sensex ended at 27,057.41, down 207.91 points.