* Shares in ITC gain 0.9 percent to 300 rupees, not far
off a record high of 306.50 rupees hit on Dec. 12, 2012, as
investors see previous fears of a potential duty on cigarettes
as having dragged down the stock excessively.
* Shares in the cigarette maker fell 11.7 percent in December on
fears of tougher regulations on tobacco products.
* Buying in defensive stocks this week on nervousness ahead of
the RBI policy review on Tuesday also seen helping.
* ITC shares have risen 3.5 percent this week, as of Thursday's
close compared with a fall of 0.6 percent in India's BSE index
* ITC last week beat estimates with a 21 percent rise in
quarterly profit as cigarette volumes improved after four
quarters of stagnant growth.