ITC drops 15% in two days on steep cigarette tax hike; Nuvama cuts to Hold
A sharp cigarette tax increase—raising incidence over 30%—triggered a 15% slide in ITC shares as Nuvama downgraded to Hold and slashed its target to Rs 415 from Rs 534. Analysts flag demand destruction and a rising 23% illicit market share, though FMCG foods, paperboards and a 4% dividend yield offer partial cushion.
ITC shares fell 15% over two days after a sharp cigarette tax hike; Nuvama downgraded to Hold, cutting target to Rs 415. FMCG foods, paperboards and a 4% dividend yield offer partial cushion against demand destruction risk.
Why this matters
ITC's 15% slide and Nuvama downgrade mark a sharp reversal from recent momentum, when the stock repeatedly hit fresh 52-week highs even as Future Group and Biocon slumped to new lows.
Retail-company signals are accelerating, up 666100% QoQ.