The shares of ITC soared over 4 percent after the presentation of the budget in Parliament on Tuesday by Nirmala Sitharaman, as the government announced no changes in tobacco tax rates. As a result, the price of cigarettes will remain unchanged.

The shares of ITC were trading at Rs 493.90 by 12:00 pm on Wednesday on the NSE. On the BSE, the share was trading at Rs 493.

Last year, a 16% increase in National Calamity Contingent Duty (NCCD) on cigarettes was announced by the Finance Minister. But this time she decided not to increase tax on tobacco, eventually paving the way for the rise in share of ITC on Wednesday.

Around 45 percent of ITC’s revenue comes from the sale of cigarettes.