In just 48 hours, about Rs 72000 crore of market value has been wiped off from a heavyweight stock like ITC, and its biggest impact has been on India’s most trusted investor LIC.

Due to sharp sell off in ITC, the investment value of LIC has decreased by about Rs 10500 crore.

This decline is being considered a big shock for investors. The biggest reason behind this entire sell off is the major change made by the Union Government in the cigarette tax structure, which is going to be implemented from 1 February 2026. Under the new rules, the base GST rate has been increased and new excise duty has also been imposed.

Due to Tobacco being a heavy FMCG stock, ITC is under direct pressure for this policy change.

In this video, the entire impact on stock price and market cap has been explained in simple language.