ITC Shares Plunge 10% on New Cigarette Excise Duty; Major MFs Brace for Impact

!ITC shares nosedived 10% to close at ₹362.70 on the NSE, erasing billions in market value after the government announced a steep hike in excise duty on cigarettes, set to take effect next month. The regulatory move, aimed at boosting revenue, has rattled investors in the FMCG giant, whose tobacco segment remains a key revenue driver. The stock's sharp correction underscores vulnerabilities in ITC's core business amid rising sin taxes. Shareholding data for the July-September 2025 quarter reveals 100% public ownership, with no promoter stakes. Mutual funds dominate, holding 14.3% through 46 schemes—led by SBI Mutual Fund (3.26%) and

ntial (2.28%). Institutions like Rajiv Jain's GQG Partners and PPFAS Mutual Fund also command over 1% each, exposing them to potential portfolio hits. Analysts warn of near-term volatility, but ITC's diversified play in hotels, paperboards, and agri-business could cushion longer-term recovery.