Sun Feb 01 03:15:02 UTC 2026: ### ITC’s Market Value Plunges by ₹1 Lakh Crore Following Cigarette Tax Hike
The Story:
ITC’s market capitalization has suffered a significant blow, losing nearly ₹1 lakh crore in just one month. This drastic decline, approximately 20 per cent, follows a sharp increase in cigarette taxes announced in late December. The market’s reaction reflects investor concern over the potential impact of the tax hike on ITC’s cigarette sales and overall profitability.
Key Points:
- ITC’s market value has decreased by almost ₹1 lakh crore in one month.
- The stock price has plummeted by nearly 20 percent.
- The decline is attributed to a significant cigarette tax hike implemented in late December.
Key Takeaways:
- Increased taxes on “sin” goods such as cigarettes can have a rapid and substantial impact on the market value of companies heavily reliant on their sales.
- Investors are highly sensitive to policy changes that can affect a company’s profitability.
- Tax policies can be a powerful tool for governments seeking to influence consumption patterns, but they carry the risk of negatively affecting the stock market performance of related companies.
First Piper 