ITC and Godfrey Phillips Shares Rise Despite Tobacco Tax Hikes

Shares of major cigarette manufacturers ITC and Godfrey Phillips surged up to 5% on Monday, defying market concerns over recent tobacco tax increases.

Despite a decline in Q1 net revenue and profit volumes attributed to the tax hikes, investors responded positively to the companies' resilient core business performance.

Analysts suggest the market had already priced in the tax impact, leading to a recovery as investors look toward long-term growth strategies for the firms.