FMCG Index Plunges 4% in 2 Days; ITC Market Cap Dips Rs 72,000 Cr on New Excise Duty

• FMCG index fell 4% in two days, hitting a nine-month low of 52,741.85.
• ITC's market capitalization eroded by over Rs 72,000 crore, with shares falling more than 14% in two sessions.
• Government notified amendments to the Central Excise Act, increasing duty on cigarettes effective February 1.
• New excise duty of Rs 2,050-Rs 8,500 per 1,000 sticks plus 40% GST now applies to cigarettes.
• Health and National Security Cess Act also notified, levying cess on pan masala, bringing total tax to 88%.

Why It Matters: New excise duties on tobacco products caused a significant fall in ITC shares and the FMCG index.