Dalal Street speculation around ITC is still continuing. Though the buzz that it may take up stake in Ravalgaon Sugar Farm Ltd has died down after denial by the sugar company, possibility of it raising cigarette prices in December is still sticking on. Business Line could elicit response from the company regarding the so-called acquisition talk, albeit in the negative, but reaction to the market expectation regarding ‘substantial’ product pri ce escalation could not be obtained.

Industry sources felt that a ‘routine’ price hike in certain branded products cannot, however, be ruled out.

Interestingly, picture-based health warnings on the cigarette package would come into effect from December 1 and equity market bets that the likely price hike and graphic warnings would not dent the turnover in value terms for the largest manufacturer of cigarette in the country.

The Re 1 ITC stock shot up to Rs 194 and closed marginally up at Rs 190 with less than usual volume. In the past one week, while ITC gained a little over one per cent, Ravalgaon lost more than 7 per cent.

Jayanta Mallick

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