Why ITC share price is surging post-Budget — explainedITC

After presentation of Budget 2022 by Union, ITC share price is showcasing high volatility with positive bias. ITC share price today opened with an upside gap of near Re 1 and went on to hit its intraday high of ₹228.80, logging more than 3 per cent rise in today's trade session. According to stock market experts, this rise in ITC shares as Finance Minister Nirmala Sitharaman didn't talk about taxation on tobacco or cigarette which is a positive for the stock. They said that one can buy this counter for short term target of ₹240.

Speaking on the reason for rise in ITC share price post-Union Budget 2022; Santosh Meena, Head of Research, Swastika Investmart Ltd said, "ITC share price is rallying post-Budget as there was no talk related to taxation on tobacco or cigarette, which is a positive for the stock because there is always a fear of tax hike and recently WHO recommended 75 per cent tax on tobacco products."

Echoing with Santosh Meena's views; Sumeet Bagadia, Executive Director at Choice Broking said, "The stock has been sideways for last few trade sessions and once it breaks the immediate hurdle at ₹228 per share levels, it may soon go up to ₹240 in near term. One can buy this counter at current levels and accumulating if the stock dips around ₹220 per share levels. However, one must maintain stop loss at ₹215 while taking position in this counter."

Union Finance Minister Nirmala Sitharaman today presented her fourth Union Budget in the parliament amid high speculation of rise in taxes on tobacco and cigarette as WHO has recommended 75 per cent tax on tobacco and tobacco products. However, there was no mention of any talks of taxation on tobacco or cigarette.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint.