The Hindu Business Line : ITC jumps on tax saving hopes

Dealers said the interest in the counter came due to likely savings by the company on corporate taxes. ITC is one of the highest corporate taxpayers to the Government and even a marginal cut would save a large sum for the company.

Dealers said the hike in excise duty on cigarette would not have much impact as the company is slowly shifting its business to non-cigarette products.

On Tuesday, the stock gained 3.34 per cent at Rs 1,337.85 on the BSE with volumes of 2.78 lakh shares; on the NSE, it closed at Rs 1,338.65, up 3.44 per cent, with volumes of 9.69 lakh shares.

Pioneer Embroideries up on customs duty cut

THE stock of Pioneer Embroideries was locked in the 10-per cent upper circuit on Tuesday. The stock price of the company closed at Rs 113.05 on the BSE with volumes of 66,283 shares.

Dealers said the interest in the stock came following the cut in custom duty on textile machinery. The talk is that the company has been increasing the capacity of its various embroidery fabrics and for this it keeps importing textile machinery.

Moreover, the company's focus on the retail stores under "Hakoba" brand is also positive for the stock. The market buzz is that the various retail stores are doing well and each store has started making profit at operating level.

Short sellers stop Budget party

IF the Union Budget spoilt the mood for the short sellers, then Tuesday was actually a good day for them.

Dealers said the rise in the stock indices on the Budget day was mainly due to the short covering by select market players. But on Tuesday these players again started selling since morning and this resulted in further selling by other players.

Dealers said several market players have now started looking at the micro issues in the Union Budget and the view that has come is that the Budget is not so rosy as anticipated by the market players after it was presented in Parliament.

Moreover, the view among the foreign broking firms is that the overall Budget is not so positive. Other than the short sellers, several other market players who had bought shares after the Budget sold part of their positions on Tuesday resulting in fall in BSE Sensex by 63 points.

Virendra Verma

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