ITC Shares in Focus: New Cigarette Tax Takes Effect, Stock Sees Worst January on Record

• ITC shares are under scrutiny as a new 40% GST on tobacco and cigarettes becomes effective from February 1, 2026.
• Finance Minister Nirmala Sitharaman's Budget 2026 announcement is awaited for further clarity on additional duties and total tax impact.
• The new tax structure replaces the previous 28% GST plus various cesses, potentially increasing the overall tax burden.
• Analysts have issued numerous 'sell' recommendations, reaching a 15-year high, due to the expected impact on ITC.
• ITC shares plummeted 20% in January, marking its worst start to a calendar year and shedding over ₹1 lakh crore in market capitalization.

Why It Matters: New cigarette tax impacts ITC shares, leading to record January losses and analyst downgrades.