Cigarette Stocks Crash: ITC, Godfrey Phillips Lose ₹60,000 Cr After Excise Duty Hike

• Government increased excise duty on cigarettes and tobacco products, effective February 1, 2026.
• Major stocks like ITC and Godfrey Phillips crashed, wiping out ₹60,000 crore market value on January 1.
• Experts fear higher prices will reduce consumption, with Nuvama estimating a 3-9% volume decline.
• Brokerages like JPMorgan and Prabhudas Lilladher downgraded ITC due to significant price hike needs and volume risks.
• Despite short-term volatility, mutual funds show continued faith in ITC, holding a 14.3% stake.

Why It Matters: New excise duty on cigarettes caused a market crash, raising concerns about future sales and profitability.