New Delhi, January 1 (Reuters):
Shares of major Indian tobacco companies fell sharply on Thursday after the government announced a new excise duty on cigarettes, making them more expensive for nearly 100 million smokers across the country. Market leader ITC Ltd, maker of popular brands such as Gold Flake, plunged 9.2%, while Godfrey Phillips India, which distributes Marlboro cigarettes in India, declined 14.1%. ITC shares were trading at ₹365.50, marking their lowest level since April 2023 and placing the stock on course for its worst single-day fall in almost six years. Godfrey Phillips was headed for its steepest decline since November 2016. ITC emerged as the top loser on the Nifty 50 index .The stock also led declines in the Nifty FMCG index, which was down 3.2% during the session. India’s finance ministry late Wednesday notified a revised excise duty ranging from ₹2,050 to ₹8,500 per 1,000 cigarette sticks, depending on cigarette length. The new tax structure will come into effect from February.
