ITC Plunges 15% in 4 Days: Excise Duty Hike Triggers Massive Stock Sell-off
Business
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Moneycontrol•06-01-2026, 17:33
ITC Plunges 15% in 4 Days: Excise Duty Hike Triggers Massive Stock Sell-off
- •ITC shares dropped over 2% on January 6, extending losses to 15% in four sessions, hitting a 52-week low of Rs 337.75.
- •The sharp decline is attributed to the Central Excise (Amendment) Bill, 2025, which imposes new excise duties on cigarettes, adding to the existing 40% GST.
- •Analysts note the duty hike translates to a 22-28% increase in costs for 75-85 mm cigarettes, impacting ITC's volumes and pricing.
- •Technical indicators show strong bearish sentiment, with some analysts advising against fresh entries and Macquarie downgrading the stock to 'Neutral' with a target of Rs 330.
- •Despite the severe technical damage, some experts see signs of a 'capitulation signature,' suggesting a potential exhaustion bottom rather than a sustained decline.
Why It Matters: ITC's stock faces significant pressure from new excise duties, leading to a sharp fall and mixed analyst outlook.
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