/images/ppid_59c68470-image-177036255467452139.webp)
What is the story about?
Shares of ITC Ltd. gained as much as 5.5% on Friday, February 6, registering its biggest single-day advance since July 2024. The stock's market capitalization is also back above the mark of ₹4 lakh crore.
With today's move, the stock has snapped a two-day losing streak.
On January 1, the Finance Minister had notified that a GST rate of 40% on tobacco, Cigarettes which became effective from February 1, 2026. Clarity is still needed on the actual additional duty or cess imposition and the total tax impact post this implementation.
You can read more on the new taxation aspect of ITC right here.
Sources have told CNBC-TV18 that higher priced cigarette packets have been introduced in the market. Price hikes of between 15% to 30% have been taken across the board.
For Godfrey Phillips, the 97mm pack is now priced at ₹300 from ₹240 earlier, a hike of 25%, according to the sources.
The announcement on January 1 had triggered a sharp fall in shares of ITC, prompting multiple downgrades by analysts, who feared risks to the company's earnings estimates. The stock fell to the lowest level in three years, with the number of "sell" recommendations on the stock rising to the highest on record.
ITC's 20% drop in the month of January was the worst start to a calendar year that the stock had in at least the last three decades. With today's move, the stock has turned positive for the month of February.
Shares of ITC are currently trading 4.6% higher, and are the biggest contributors to the recovery on the Nifty 50 index on Friday from the lows of the day. The stock now trades at ₹324.25. Along with ITC, shares of Godfrey Phillips are also trading with gains of 11.3% on Friday at ₹2,206.9.
With today's move, the stock has snapped a two-day losing streak.
On January 1, the Finance Minister had notified that a GST rate of 40% on tobacco, Cigarettes which became effective from February 1, 2026. Clarity is still needed on the actual additional duty or cess imposition and the total tax impact post this implementation.
You can read more on the new taxation aspect of ITC right here.
Sources have told CNBC-TV18 that higher priced cigarette packets have been introduced in the market. Price hikes of between 15% to 30% have been taken across the board.
For Godfrey Phillips, the 97mm pack is now priced at ₹300 from ₹240 earlier, a hike of 25%, according to the sources.
The announcement on January 1 had triggered a sharp fall in shares of ITC, prompting multiple downgrades by analysts, who feared risks to the company's earnings estimates. The stock fell to the lowest level in three years, with the number of "sell" recommendations on the stock rising to the highest on record.
ITC's 20% drop in the month of January was the worst start to a calendar year that the stock had in at least the last three decades. With today's move, the stock has turned positive for the month of February.
Shares of ITC are currently trading 4.6% higher, and are the biggest contributors to the recovery on the Nifty 50 index on Friday from the lows of the day. The stock now trades at ₹324.25. Along with ITC, shares of Godfrey Phillips are also trading with gains of 11.3% on Friday at ₹2,206.9.
/images/ppid_59c68470-image-177036012841940547.webp)
/images/ppid_59c68470-image-177036003376394195.webp)
/images/ppid_59c68470-image-177036009655475327.webp)