Overview of the significant increase in ITC's share price following the Union Budget 2024 announcement by Finance Minister Nirmala Sitharaman.
1
FM Sitharaman's budget address announced no changes to tobacco taxation, reassuring businesses like ITC, which rely heavily on cigarettes for income.
2
ITC share price rose over 5% after the announcement, opening at ₹467.05 and reaching an intraday high of ₹489.80 on the BSE.
3
Nifty FMCG index rose 2.7%, with ITC leading the gains, indicating a positive market sentiment towards the FMCG sector.
4
Analysts predict a positive trend for the FMCG sector, expecting a revival in rural demand to boost ITC's non-tobacco businesses.
5
Ruchit Jain of 5paisa noted ITC's recent upmove with good volumes as a positive sign, placing immediate support around ₹460.
6
The broader trend for the FMCG index is positive, with stocks in the sector witnessing good price-volume action and expected outperformance in the near term.
7
The Finance Minister boosted the Union Budget's rural allocation by 12%, expected to benefit ITC's non-tobacco businesses such as FMCG and Agri.
8
Higher standard deduction and revised tax rates under the New Tax Regime will result in net tax savings for individuals, immediately benefiting FMCG firms like ITC, HUL, Dabur, and Nestle.
9
The surge in ITC's share price is attributed to the unchanged tobacco taxation, positive market sentiment, and expected benefits from increased rural demand and tax savings for individuals.