Mumbai, Feb 28 (PTI) Cigarette stocks, led by ITC, fell sharply today, following the Budget proposal to increase excise duty. ITC tanked 11.12 per cent to Rs 350 on the BSE.
The stock was the biggest loser among the 30 blue-chips which constitute the stock market benchmark, Sensex. The heavyweight stock surrendered its initial gains after the announcement.
Shares of Godfrey Phillips India tumbled 5.44 per cent, VST Industries fell by 3.98 per cent and Golden Tobacco was down 2 per cent on the BSE.
"Excise duty on cigarettes is being increased by 25 per cent for cigarettes of length not exceeding 65 mm and by 15 per cent for cigarettes of other lengths.
Similar increases are proposed on cigars, cheroots and cigarillos," said Finance Minister Arun Jaitley in his Budget Speech.
In the stock market, the Sensex was trading 164.69 points lower at 29,034.20.