Shares in India’s ITC Ltd falls 0.6 pct.
Nomura Securities downgrades stock to “neutral” from “buy”; cuts price target to 372 rupees from 392 rupees.
Company’s cigarette business is now entering a period of much lower growth than in the past decade, says Nomura.
Tougher regulatory environment means there will continue to be negative news flow around the stock over the next few quarters, Nomura says.
Nomura says cigarette business growth is more likely to be 10 pct vs 17 pct average in past decade.