Business
India’s ITC Sheds $7 Billion as ‘Tax Shock’ Triggers Rating Cuts
SOURCE:Bloomberg|BY:Alex Gabriel Simon
India’s largest cigarette maker ITC Ltd. wiped out about $7 billion in market value after a government tax hike on tobacco products triggered a wave of brokerage downgrades.
January 2, 2026 at 5:17 AM UTC
India’s largest cigarette maker ITC Ltd. wiped out about $7 billion in market value after a government tax hike on tobacco products triggered a wave of brokerage downgrades.
Shares of the firm fell as much as 5.1% on Friday, touching the lowest level since February 2023 and extending a near 10% slide from the previous session. At least 11 brokerages, including Goldman Sachs Group Inc., JPMorgan Chase & Co. and Morgan Stanley, downgraded the stock after the government hiked excise duty on cigarettes this week.