Shares of ITC rose sharply on Tuesday, defying a weak broader market. The stock gained ₹2.90, or 0.88%, to trade at ₹332.10 on the NSE, compared to its previous close of ₹329.20.The rise in ITC came even as benchmark indices remained under pressure. The NSE Nifty 50 slipped 165.25 points, or 0.64%, to 25,529.10, while the BSE Sensex declined 517.81 points, or 0.62%, to 83,052.54. The overall market weakness was attributed to selling pressure across key sectors, but ITC emerged as a notable outperformer. Market participants attributed ITC’s strength to its defensive nature and steady fundamentals, which often attract investors during volatile sessions.
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.
Domestic benchmark indices have remained under a continuous session for over two weeks, with Nifty 50 declining nearly 2 per cent in a month and Sensex crashing by over 2 per cent in the same period. On Monday, Jan 19, markets opened lower and continued to fall with Nifty 50 slipping below 25,500 at 25,494, down 0.70 per cent, while Sensex fell 0.80 per cent at an intraday low of 82,898.Markets have been trailing lower due to multiple reasons, including trade deal uncertainty between the US and India. Continuous FII selling in the domestic market. But, the latest cause fueling this downward trend is the fresh tariff threat by US President Donald Trump to eight EU nations and the ongoing earnings season of India Inc.