ITC Shares Continue to Fall as Investor Returns Decline Amid Nifty and Sensex Slump

Shares of FMCG major, ITC continued to decline in Tuesday’s trading, slipping 0.48% to ₹324.75 on the NSE, compared to the previous close of ₹326.30. The stock remained under pressure as investor returns continued to decline  ahead of the release of its third-quarter earnings for the financial year 2025-26. ITC stock has taken a severe beating on the bourses; with the stock ending lower in 10 out of the 11 trading sessions so far in January 2026 post the steep tax hike on cigarettes.

As of date, the stock has crashed 18.3 per cent with another 9 trading sessions remaining this month. At current levels, historical data shows that the stock is on course to register its biggest monthly loss in nearly two decades. The current fall is on account of a double-whammy on cigarettes. The government, on December 31, 2025, notified a new tax structure (levies in 20 - 55 per cent range) for tobacco and pan masala products, and raised the GST rate on cigarettes from 28 per cent to 40 per cent. The new rates are set to take effect from February 1, 2026.

ITC is widely-regarded as a safe stock to hold considering its dividend-paying history. In FY25, ITC declared and paid a total dividend of Rs 14.35 per share. As of January 6, 2026, the company's dividend yield is approximately 4.10 percent. The FMCG major has been paying consistent and rich dividends to its shareholders. In 2025, the FMCG giant gave a dividend three times – Rs 7.85 in May, and Rs 6.50 in February, respectively.In 2024, the company awarded dividends on two occasions – Rs 7.5 in June and 6.25 in February, respectively.The weakness in ITC came as benchmark indices ended sharply lower. The Nifty 50 fell 178.90 points, or 0.71%, to close at 25,053.60, while the BSE Sensex declined 616.32 points, or 0.75%, to settle at 81,564.15, reflecting cautious sentiment and profit booking across sectors.

Despite being considered a defensive stock, ITC failed to escape the broader market downturn, with selling pressure tracking the overall decline in frontline indices. The company is on course to declare their Q3 earnings. ITC Ltd, in the exchange filing, informed the bourses that the meeting of the Board of Directors of the company is scheduled on Thursday, January 29, 2026, to consider and approve the unaudited standalone and consolidated financial results of the company. ITC had declared its earnings for Q2 FY26 at around 4.30 pm on October 30, 2025. Therefore, it is expected that it might announce its Q3 FY26 earnings at around the same time on Thursday, January 29, 2026.