New Delhi, Feb. 19 -- Cigarette stocks, which went up in smoke at the start of the new calendar year following a steep excise duty hike, have since rebounded. This turnaround has been sparked by reports that companies like ITC are looking to increase the cigarette prices in the range of 20-40% to mitigate the impact of such tax hikes.

ITC shares have rebounded 7% from their February low, following a sharp 20% decline in January. Marlboro-maker Godfrey Phillips has staged a sharper recovery, surging 25% from its February low and recouping most of the 26% drop seen last month. VST Industries has also gained momentum, rising 5% so far this month and 9% from its February low.

Vinod Nair, Head of Research, Geojit Investments Limited, said, "...