Shares of ITC performed strongly in intraday trade on Thursday, with the stock hitting a fresh high of Rs 393.35 on the BSE. The stock was up 2% at Rs 392 at 11:50 am on a trading volume of about 726,000 shares, compared with the exchange’s two-week daily average of about 345,000 shares.

Meanwhile, the S&P BSE Sensex gained 0.2% to 59,838. Along with the ITC, the BSE FMCG Index outperformed the benchmark index, rising 0.9% to 16,489.

In the December quarter, ITC reported a 23.4% year-on-year rise in net profit to Rs 5,007 crore. Total revenue also rose 3.6% year-on-year to Rs 19,021 crore.

Commenting on third-quarter earnings, the company’s management said economic activity continued to gain momentum and commodity inflation continued to moderate, although core inflation remained elevated. However, they said rural demand remained relatively subdued but improved quarter-on-quarter.

The stock’s recent rally came despite a proposed tax hike on certain cigarettes. Most analysts believe the proposed tax increase is modest and quickly passed on through small price increases.

On Budget Day, February 1, the stock hit a panic low of Rs 329.10 after announcing the rate hike. However, the stock ended up closing 2.6% higher at Rs 361.40 on the same day on heavy volume.

This month, the stock is up more than 19% from its Budget Day low. While the BSE Sensex has risen 1.7% from its budget day low.

Meanwhile, Agro Tech Foods and Advanced Enzyme Technologies shares soared 4.5% among the BSE FMCG components. Shares of Godfrey Phillips and Globus Spirits were up around 3% each. ADF Foods, Hatsun Agro, Ugar Sugar, Bajaj Hindusthan and KRBL were all up more than 2%.

Shares of fast-moving consumer goods companies were pressured in late trading amid concerns over the potential impact of El Nino factors.