Mumbai, 1 January: ITC share price declined sharply during the first trading session of 2026, emerging as one of the top laggards on the benchmark Nifty 50 index. The stock came under selling pressure after the Indian government notified an additional excise duty on cigarettes, effective from 1 February 2026.

As of late morning trade, ITC shares were trading around INR 385 on the National Stock Exchange (NSE), registering a decline of about 4 to 6 per cent from the previous close. The stock slipped after opening lower as investors reacted to the revised tax structure targeting tobacco products. Tata Steel Share Price Today, January 1, 2026: Stocks of Tata Steel Limited Rise by 0.41% in Early Trade; Check Latest Price on NSE

Why ITC Share Price Is Falling Today

The sell-off follows a notification from the Union Finance Ministry announcing a new excise duty ranging from INR 2,050 to INR 8,500 per 1,000 cigarettes, depending on cigarette length. This levy will be imposed in addition to the existing 40 per cent GST, not as a new GST rate. Brokerage analysts said the move could lead to a 22 to 28 per cent increase in costs for premium cigarette categories, potentially forcing companies such as ITC to raise prices. Adani Power Share Price Today, January 1, 2026: Stocks of Adani Power Limited Rise by 5.12% in Early Trade on New Year’s Day; Check Latest Price on NSE.

Tobacco Stocks Under Pressure

The tax announcement weighed on the broader tobacco sector, with Godfrey Phillips India also witnessing notable losses in early trade. Other tobacco stocks showed mixed movement, reflecting investor caution ahead of the duty implementation. Despite weakness in tobacco shares, benchmark indices Nifty 50 and Sensex traded marginally higher, supported by gains in select IT and auto stocks.

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(The above story first appeared on LatestLY on Jan 01, 2026 12:35 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).