ITC Shares Price Falls Down | ITC Stock Buy or Sell | ITC falls why?

ITC Shares Price Falls Down | ITC Stock Buy or Sell | ITC falls why?

ITC shares fell sharply after the government announced a new excise duty on cigarettes, adding to the already high GST and cess structure. Investors are worried about higher prices, lower volumes, and near-term earnings pressure.

In this video, we explain:
• what the new cigarette tax means for ITC
• why the stock reacted so sharply
• likely impact on cigarette prices, margins, and demand
• how this move affects the overall tobacco sector
• what long-term investors should really focus on

Historical Trends — What Happened Earlier

This is not the first time cigarette taxes have gone up.

History shows:
• sharp tax hikes often trigger big short-term sell-offs in ITC
• price hikes usually follow to offset higher taxes
• volumes dip initially, then stabilise over time
• over 3–5 years, ITC has generally recovered from tax-related falls
• diversification into FMCG, hotels, paper and agri has supported business performance

Examples from the past:
• 2017 GST cess hike → big initial fall → long consolidation → recovery later
• 2020 duty hike → sharp correction → strong comeback in later years

Key takeaway for investors

Tax hikes create short-term panic and volatility.
Long-term outcomes depend on:
• ITC’s pricing power
• consumer demand resilience
• ability to manage volumes
• strength of non-cigarette businesses

Видео ITC Shares Price Falls Down | ITC Stock Buy or Sell | ITC falls why? канала Paisa Kodi