Budget Impact : ITC dips 9% after excise duty hike on cigarettes

The stock has fallen nearly 13% from its record high of Rs 410 touched on NSE during intra-day trade today.

ITC has dipped 9% to Rs 358 on National Stock Exchange (NSE) after the finance minister proposed to some changes in excise duty on cigarettes.

The stock has fallen nearly 13% from its record high of Rs 410 touched during intra-day trade today.

The counter has seen huge trading volumes with a combined 23.21 million shares changed hands on the counter till 1252 hours on NSE and BSE.

“Excise duty on cigarettes is being increased by 25% for cigarettes of length not exceeding 65 mm and by 15% for cigarettes of other lengths. Similar increases are proposed on cigars, cheroots and cigarillos,” finance minister said in budget speech.

Maximum speed of packing machine is being specified as a factor relevant to production for determining excise duty payable under the Compounded Levy Scheme presently applicable to pan masala, gutkha and chewing tobacco. Accordingly, deemed production and duty payable per machine per month are being notified with reference to the speed range in which the maximum speed of a packing machine falls, he adds.

At 1303 hours, ITC was down 7% to Rs 367 on NSE.

VST Industries (down 3% at Rs 1,684) and Godfrey Phillips India (down 1% at Rs 477) have too fallen more than 10% from their respective intra-day highs.