Harendra Kumar of Elara Capital told CNBC-TV18, "ITC - three months prior to the Budget does nothing but the negatives this time around have been a little earlier than that. However, once there was news that the government is not going to act on the excise and clam down on farmers on tobacco farming, the stock moved up from Rs 350 to Rs 400. So, the market is kind of pricing in that there is going to be not such an aggressive action by the government after spate of excise hikes."
"If that were to come about we would not be surprised if ITC goes higher than these levels and that has been the trend for ITC. Post Budget, ITC tends to do far more better than some of the other defensives because the pressure or expectation of the Budget is a past event and the stocks start to reprice in the future. So, the strength in ITC is remarkable at this given point of time which is holding up the market," he added.
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