ITC Stock Plunges: Tax Hikes Worry Investors

• ITC shares fell after excise duty hike on cigarettes.
• Stock hit 52-week low of Rs 345.25, down over 5 percent.
• Investor confidence declined in the diversified ITC group.

Mumbai: ITC Limited shares saw sharp selling pressure after the government announced a fresh increase in excise duty on cigarettes. On January 2, the stock fell more than 5 percent and touched a new 52-week

low of Rs 345.25. This marked the second straight trading session of heavy losses for the stock, following a lower circuit hit a day earlier.

The fall was quick and steep. During early trading, ITC shares broke below the previous day’s low and were trading nearly 4 percent down. The decline affected investor confidence in the diversified group, which has businesses ranging from cigarettes and FMCG to hotels and agribusiness.