ITC hits fresh 52-wk low; brokerages say increase in NCCD a big blow

In the past 12 months, shares of ITC have underperformed the market by falling 22 per cent against 7 per cent rise in the Nifty50 index. The NIfty FMCG has remained unchanged during the period

ITC continued to bleed for the second consecutive day on Monday, after the Finance Minister, while presenting Union Budget 2020-21 on Saturday, proposed to increase the National Calamity Contingency Duty (NCCD) on cigarettes, hookah, chewing tobacco, snuff and tobacco extracts and essence. The stock slipped over 5 per cent and hit a fresh 52-week low of Rs 207.20 apiece on the BSE. 

Stocks of other cigarette and tobacco manufacturers also declined in trade. While Godfrey Phillips India slipped over 4 per cent to Rs 1086.50, VST Industries fell over 2 per cent to Rs 4,128 levels.

Brokerages have lowered their