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ITC shares are expected to buck the trend on account of an announcement on pricing of cigarettes that will come next week. The pricing announcement will come next week and the stock (ITC) will rise.
The government, in the Union Budget for 2013-14 (Apr-Mar), hiked excise duty on cigarettes of over 65 mm length by 18%. Following this, states such as Rajasthan, Bihar, Gujarat and Maharashtra also hiked local taxes on cigarettes.
Hindustan Unilever will face several headwinds in 2013-14 (Apr-Mar). Revenue growth will likely moderate to low teens as price growth comes off sharply in soaps and detergents after two years of above-normal increases.
Stocks of major fast-moving consumer goods companies, apart from ITC, are seen trading with a negative bias next week as the market awaits indicators that will quantify the perceived moderation in demand. There has very clearly been a moderation in demand, but the quantum of that moderation is not known. All eyes will be on the earnings for the fourth quarter and any management comments that will follow.
ITC shares are expected to buck the trend on account of an announcement on pricing of cigarettes that will come next week. The pricing announcement will come next week and the stock (ITC) will rise.
The government, in the Union Budget for 2013-14 (Apr-Mar), hiked excise duty on cigarettes of over 65 mm length by 18%. Following this, states such as Rajasthan, Bihar, Gujarat and Maharashtra also hiked local taxes on cigarettes.
Hindustan Unilever will face several headwinds in 2013-14 (Apr-Mar). Revenue growth will likely moderate to low teens as price growth comes off sharply in soaps and detergents after two years of above-normal increases.
