Cigarette Stocks Plunge Rs 60,000 Cr After Excise Hike; ITC Faces Volume Risk

• Cigarette stocks, led by ITC Ltd and Godfrey Phillips India, shed nearly Rs 60,000 crore in market cap.
• The decline follows a sharp excise duty hike on cigarettes, effective February 1, 2026.
• Experts warn of near-term volume risks for all companies as consumers adjust to higher prices.
• ITC, with 75% market share, is expected to be resilient long-term due to diversification, despite potential 15% price hikes.
• Prabhudas Lilladher downgraded ITC to 'Reduce,' citing estimated 12.5% volume drop in FY27.

Why It Matters: Excise hike triggers massive market cap loss for cigarette stocks, with short-term volume risks expected.