ITC shares tumble 5% as govt hikes excise duty on cigarettes

Mumbai: Shares of ITC today plunged 5 percent after government raised excise duty on cigarettes.The blue-chip stock ended 4.97 percent lower at Rs 343.30 on the BSE. During the day, it plunged 5.23 percent to Rs 342.35.[caption id="attachment_1613563" align="alignleft" width="380"] Representational image. AFP[/caption]At the NSE, it slipped 5.04 percent to Rs 343.15.The stock was the biggest loser among the blue-chips on both Sensex and Nifty during the day.Other cigarette stocks also faced selling pressure. VST Industries fell by 3.79 percent, Golden Tobacco was down 3.21 percent and Godfrey Phillips India Ltd lost 1.79 percent on the BSE.The government came down heavily on smokers and tobacco consumers in Budget 2015-16 with a steep increase in excise duty.Citing need for promotion of public health, Finance Minister Arun Jaitley on Saturday said: "Excise duty on cigarettes is being increased by 25 percent for cigarettes of length not exceeding 65 mm and by 15 percent for cigarettes of other lengths. Similar increases are proposed on cigars, cheroots and cigarillos."The benchmark BSE Sensex ended 97.64 points up at 29,459.14. PTI