Tobacco Tax Shock Weighs on FMCG Pack

As on 1 Jan 2026, FMCG stocks came under sharp pressure after the government announced a fresh excise duty hike on cigarettes, effective from 1 Feb 2026. !ITC corrected nearly 10% during the session, driven by the tax impact and a large block deal, while

saw a steep fall of up to 19.26%, reacting in sympathy to the same tobacco-tax overhang. The weakness in these heavyweight names dragged the NIFTY FMCG index lower by as much as 3.6% during the day. The selling pressure extended into the morning trade of 2 Jan 2026. ITC continued to trade in the red, correcting over 3% by 9:30 AM, while Godfrey Phillips was down around 4.6% at the same time. The FMCG index also remained under pressure in early trade, reflecting cautious sentiment across the space. The market appears to be anchoring to near-term margin concerns and policy-led cost pressures within the tobacco segment. 📌 Disclaimer: This content is for information only and not investment advice. Investments in securities market are subject to market risks. Read all the related documents carefully before investing. Please consult a SEBI-registered advisor before making any investment decisions.