ITC plunges 5% on rise in tobacco tax

The stock finally ended with a loss of 5.5% at Rs 191. The counter witnessed heavy trade volumes of 3.51 million shares on the BSE today.
_____________________________________________________
(Updated at 1110 hrs)

ITC has slumped after announcement of the Maharshtra budget.

The stock opened 1% higher at Rs 204. However, it soon slipped into the red and touched a low of Rs 190, down 6%. The stock is now trading at the low. Over 1.36 million shares have been traded on the BSE so far.

The Maharshtra budget was announced yesterday. In the budget, the sales tax on tobacco products, excluding bidi and unmanufactured tobacco, has been increased from 12 per cent to 20 per cent. There is fear that other states may also impose higher taxes on tobacco.