ITC drops nearly 4% as govt goes ahead with anti-smoking law; top Sensex loser

NEW DELHI: ITC Ltd plunged as much as 3.9 percent in trade on Wednesday after the government on Tuesday proposed to amend the anti-smoking law recommending a ban on sale of loose cigarettes and raising the minimum age for buying tobacco products to 21 years from existing 18.

ITC finally closed 3.29 percent lower at Rs 348.40. It hit a low of Rs 346.10 and a high of Rs 359 in trade today.
According to the market research firm Euromonitor International India, 70 per cent of cigarettes sold in India are sold in the form of loose cigarettes and 102.1 billion sticks of cigarettes were smoked during the year 2012 in the country.

Additionally the health ministry has proposed raising the fine amount on smoking in public places to Rs 1,000 from Rs 200, ET reported.

It has also suggested that designated smoking zones in hotels and restaurants should be done away with because having them defeats the very purpose of protecting nonsmokers. It however makes an exception for international airports, added the report.