ITC Crash Drags Nifty FMCG Down 3% to 9-Month Low Amid New Excise Duty

• Nifty FMCG index plunged over 3% to a near nine-month low on January 1, becoming the top losing sectoral index.
• Heavyweight ITC shares crashed 10% to Rs 362.70 after the government imposed new excise duty on cigarettes.
• Parliament approved the Central Excise (Amendment) Bill, 2025, leading to an excise duty of Rs 2,050–8,500 per 1,000 sticks from February 1.
• This new duty, in addition to 40% GST, will increase costs by 22-28% for certain cigarettes, impacting ITC's volumes.
• Other FMCG stocks like United Spirits, Radico Khaitan, Tata Consumer Products, Dabur India, and United Breweries also saw declines.

Why It Matters: New excise duty on cigarettes caused ITC shares to crash, pulling the Nifty FMCG index to a 9-month low.