ITC Share Price Slips 1% Despite Rally in Stock Market Today — What’s Driving the Move?

The ITC share price quietly slipped on Monday, even as the broader stock market today painted a positive picture.

After gaining more than 4% last week, the stock saw mild profit booking. Nothing dramatic. Just investors locking in gains after a short recovery.

But when the Nifty was rising, ITC was falling. That’s where the story begins.

Market Performance: ITC Share Price vs Stock Market Today

On February 23, ITC shares opened flat.

• Opening Price: ₹327
• Previous Close: ₹327
• Intraday Low: ₹324.40
• Intraday Decline: 0.80%
• Weekly Gain (Last Week): Over 4%

Meanwhile, the Nifty 50 moved in the opposite direction.

• Nifty 50 Intraday High: 25,771
• Index Gain: 0.80%

So while the stock market today showed strength, ITC share price witnessed slight pressure.

This divergence tells us one simple thing — stock-specific factors were at play.

ITC Share Price Trend: From 52-Week Low to Mild Recovery

The recent journey of the ITC share price has not been smooth.

• 52-week low: ₹302 (touched on February 2)
• Stock down over 18% in one year
• January decline: 20% drop
• February performance so far: Up around 1.5%

January was tough. The sharp fall came after a steep hike in cigarette taxes.

But once prices were increased, the selling pressure slowed. Some buying interest returned. That’s when the small February recovery started.

Still, the stock remains under pressure compared to last year.

Main News: Cigarette Tax Hike at the Core

The biggest trigger behind ITC share price volatility is taxation.

From February 1:

• An additional excise duty on cigarettes and tobacco products became effective.
• This is over and above the highest 40% GST slab.
• Cigarette tax increase ranges from 20% to 55%, depending on size.

Markets reacted sharply in January. A 20% monthly fall shows how sensitive the stock is to regulatory changes.

Taxation remains the headline risk for ITC.

How the Company Responded?

Once the tax hike was announced, price revisions followed.

Across key brands, cigarette prices were increased in the range of:

• 20%–40% price hike

The intent was clear. Offset the tax burden.

The market initially panicked. But after pricing action, the narrative shifted toward the company’s pricing power.

Still, one big question remains unanswered:

Will higher prices impact sales volumes?

That clarity is yet to emerge.

Monthly & Annual Snapshot of ITC Share Price

To understand the move better, let’s look at the broader picture of ITC share price performance:

• 1-Year Performance: Down more than 18%
• January 2026: Down nearly 20%
• February 2026 (so far): Up around 1.5%
• Recent Weekly Move: Up 4% before profit booking

This pattern clearly shows extreme volatility driven by tax announcements.

The stock is reacting more to policy than to business fundamentals right now.

Company Details: Beyond Cigarettes

While cigarettes are the primary earnings driver, ITC operates across multiple segments:

• FMCG (non-cigarette products)
• Hotels
• Agri-business
• Paperboards & Packaging

One notable highlight:

• Hotel segment occupancy above 70%

The company is also pushing growth in non-cigarette FMCG with a long-term revenue aspiration of ₹1 lakh crore by 2030.

Even so, cigarette taxation remains the main driver of the ITC share price movement in the short term.

What the Current Movement Tells Us?

Let’s break it down simply.

The stock market today is strong. Nifty is up. Sentiment is positive.

Yet ITC share price dropped nearly 1%.

That indicates:

• Profit booking after last week's 4% rally
• Continued caution after tax hike
• Volume impact still unknown
• Regulatory overhang remains

This isn’t panic selling.

It’s measured reaction.

Regulatory Landscape and Impact

Cigarettes now face:

• 40% GST
• Additional excise duty effective February 1

Historically, tobacco taxation has been unpredictable.

Every change impacts margins, pricing, and demand. That’s why ITC share price tends to react sharply to such announcements.

Another factor to note:

• Competitive pressure from illicit cigarettes could impact the formal industry.

Regulatory shifts don’t just affect tax payout. They influence market share dynamics too.

Why ITC Share Price Is Under Watch in Stock Market Today?

ITC remains one of the most tracked FMCG stocks in India.

Reasons:

• High dividend yield (nearly 4.4%)
• Valuation at nearly 19 times P/E
• Large retail investor base
• Heavy index weight

So even a 1% move grabs attention.

And when it moves opposite to the broader stock market today, traders start asking questions.

Short-Term Volatility, Long-Term Narrative

While January was painful, February has shown signs of stability.

But stability doesn’t mean clarity.

The unknown remains volume performance post price hike.

Urban consumption recovery and hotel revival are positive signs. But cigarette taxation is still the biggest variable.

That’s why ITC share price is currently trading in a sensitive zone.

Summary: What Today’s Move Really Means?

Here’s the crisp takeaway from today’s session:

• ITC share price fell 0.80% to ₹324.40.
• Nifty 50 rose 0.80% to 25,771.
• Stock had gained over 4% last week.
• It hit a 52-week low of ₹302 on February 2.
• January saw a sharp 20% decline.
• February so far shows a 1.5% recovery.
• New excise duty effective February 1 adds pressure.
• Cigarette tax increase ranges from 20% to 55%.
• Price hikes of 20%–40% implemented across key brands.

The ITC share price is currently navigating through regulatory challenges.

The broader stock market today may be positive. But stock-specific triggers are steering ITC’s movement.

At this stage, the story is simple.

Policy drives sentiment.

Sentiment drives price.

And ITC remains right at the intersection of both.

Source: Livemint