Cigarette stocks rally after Cabinet bans e-cigarettes
Following the announcement, stocks of cigarette manufacturers in India spiked.
By ETMarkets.com |
The Cabinet on Wednesday banned manufacturing and distribution of e-cigarettes in India, Finance Minister Nirmala Sitharaman said in a press briefing.
Following the announcement, stocks of cigarette manufacturers in India spiked. Godfrey Phillips ended the day up 5.5 per cent at Rs 991, ITC was up 1 per cent at Rs 239.60, Golden Tobacco surged 4.7 per cent to Rs 31.25, VST Industries rose 3.43 per cent to Rs 3,622.
In the past, some farmer unions had appealed the government to ban e-cigarettes and vaping devices as it affected their livelihood. Bhartiya Kisan Union on Tuesday said if e-cigarettes are allowed in India, it will have "devastating" effects.
The ban on electronic nicotine delivery systems (ENDS), commonly known as e-cigarettes, has been delayed by the health ministry since 2018.
Following the announcement, stocks of cigarette manufacturers in India spiked. Godfrey Phillips ended the day up 5.5 per cent at Rs 991, ITC was up 1 per cent at Rs 239.60, Golden Tobacco surged 4.7 per cent to Rs 31.25, VST Industries rose 3.43 per cent to Rs 3,622.
In the past, some farmer unions had appealed the government to ban e-cigarettes and vaping devices as it affected their livelihood. Bhartiya Kisan Union on Tuesday said if e-cigarettes are allowed in India, it will have "devastating" effects.
The ban on electronic nicotine delivery systems (ENDS), commonly known as e-cigarettes, has been delayed by the health ministry since 2018.
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