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ITC shares jump 2.6 pct

June 30, 2010
bse | ITC | Sensex

Bombay Stock ExchangeShares in cigarette-to-hotel business chain ITC rose 2.6 percent on Wednesday to top the list of Sensex gainers on better earnings expectations.

The stock, which closed at 304.75 rupees, was among the big gainers on the BSE FMCG Index which topped the sectoral list with a rise of 1.9 percent.

HSBC Securities said in a note on Tuesday that the June-quarter results could be a catalyst for the stock, since it could result in EBIT (earnings before interest and taxes) margin expansion for the cigarettes business, as price increases taken are higher than necessary to offset tax increases.

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