ITC stock nears 52-week low; slips 8% in 1 month, down 21% thus far in 2026 The stock price of ITC traded close to its 52-week low of ₹287 on Friday, marking a significant decline in the first half of 2026. Over the past month, the company’s shares fell 8 percent, underperforming the BSE Sensex’s 2.5 percent drop. As of May 29, 2026, the stock was trading at ₹288.45 on the BSE, down 1 percent from the previous day, while the broader index declined 0.6 percent. The stock’s performance has been further weighed by a 21 percent decline in 2026, compared to an 11.3 percent drop in the benchmark index. The decline in ITC’s stock price has been attributed to a combination of factors, including the challenging taxation environment for the tobacco sector and broader macroeconomic pressures. The company’s management has acknowledged the impact of steep tax hikes on cigarette sales, particularly the increase in GST rates from 28 percent of transaction value to 40 percent of retail sale price, effective February 1, 2026. These changes, coupled with the phasing out of the Compensation Cess, have led to an unprecedented rise in tax incidence on cigarettes, creating significant financial strain for the sector. ITC’s stock reached a 52-week high of ₹428.50 on June 10, 2025, but has since faced sustained pressure. The company’s Q4FY26 results highlighted a 4.5 percent implied cigarette volume growth, which exceeded expectations despite the challenges posed by the February 2026 tax hikes. However, analysts note that the market remains focused on the steep tax increases, which have led to a consensus of overestimated cigarette volume declines for FY27.#bse_sensex #itc #icici_securities #axis_securities #jm_financial_institutional_securities
