The ITC share price stayed under pressure for the second straight session, setting the tone for a weak day in the FMCG space. As selling intensified, the stock market today reflected rising caution among investors, especially in cigarette and FMCG stocks.
What unfolded over the last two days wasn’t sudden panic—it was a slow burn triggered by a clear regulatory signal. And markets reacted swiftly.
Market Performance: FMCG Index Under Stress
The selling pressure on ITC spilled over into the broader FMCG pack.
- The Nifty FMCG index slipped over 1% during Friday’s session
- Over the last two trading sessions, the index is down more than 4%
- It touched an intraday low of 52,741.85, the lowest level in nine months
- The last time FMCG stocks traded at similar levels was March 21, 2025, when the index fell to 52,670.60
Notably, FMCG was the only sectoral index in the red among Nifty indices, clearly underlining where market pressure was concentrated.
Main News: ITC Share Price Extends Losses
The ITC share price declined sharply again on Friday, marking its second consecutive day of losses.
Here’s how the stock moved:
- Intraday fall: 5.11%
- Lowest level hit: ₹345.25
- This level also marked ITC’s 52-week low
- Over the past two sessions, ITC shares are down more than 14%
The sustained decline wiped out a sizeable chunk of investor wealth in a short period.
ITC Market Capitalisation Takes a Big Hit
The fall in ITC share price led to a sharp erosion in the company’s market value.
- Market capitalisation fell by over ₹72,000 crore
- Current market cap stands at ₹4,38,075.08 crore
- This is compared to the company’s market value on January 31, just ahead of the government’s notification on excise duty changes
The scale of the decline clearly shows how sensitive FMCG stocks are to policy-related updates.
Why ITC Shares Are Falling: Key Trigger Explained?
The pressure on ITC began after a major regulatory development.
On Thursday, the government notified amendments to the Central Excise Act, which directly impacted cigarette taxation.
Key points from the notification:
- Excise duty imposed between ₹2,050 and ₹8,500 per 1,000 sticks
- The rate varies based on cigarette length
- The new duty comes over and above 40% GST
- The revised tax structure will be effective from February 1
Following this announcement:
- ITC shares fell 9.69% on Thursday
- The stock closed that day at ₹363.95
- Selling pressure continued into Friday’s session
Pan Masala Cess Also Notified
Alongside cigarette duties, the government also announced changes for pan masala-related businesses.
- The Health and National Security Cess Act was notified
- The cess will be levied on manufacturing capacity
- Effective date remains February 1
- Total tax incidence on pan masala stays at 88%, including 40% GST
This update added to the nervousness around the broader FMCG and tobacco-linked space.
Other FMCG Stocks Also Slip
The weakness wasn’t limited to ITC alone. Several FMCG counters traded lower.
- Radico Khaitan: down up to 3.55%
- United Breweries: declined 0.97%
- Nestle India, United Spirits, Marico, Godrej Consumer Products: slipped up to 1%
Tobacco-related names also saw continued pressure:
- Godfrey Phillips India
- Down 4.58% on Thursday to ₹2,184.60
- Fell another 2.07% on Friday to ₹2,243.10
- VST Industries
- Slipped 2.56% on Thursday to ₹248.60
- Extended losses on Friday, falling 1.66% to ₹251.25
Company Details: ITC at a Glance
- Company: ITC Ltd
- Sector: FMCG / Cigarettes
- 52-Week Low: ₹345.25
- Market Cap: ₹4.38 lakh crore (approx.)
Summary: What This Means for Stock Market Today?
The sharp fall in ITC share price over two sessions has become the central story in the stock market today. Regulatory changes around excise duty acted as the trigger, but the broader impact is visible in FMCG index performance.
With:
- A ₹72,000 crore erosion in market value
- FMCG index at a nine-month low
- And multiple FMCG stocks trading in the red
…the message from the market is clear: policy updates matter, and markets respond instantly when clarity emerges.
For now, ITC remains at the heart of the FMCG narrative—setting the tone not just for its own stock, but for the sector as a whole.
Source: Moneycontrol
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