ITC shares gain amid market-wide decline

ITC shares are gaining today amidst the market wide decline. At 3:15 p.m. IST, 26^th September, ITC’s share price is up by 1.29%, trading at Rs 405.25. Nifty 50 index is down by 0.95% at this time. ITC is among the top gainers at Nifty 50 at this time. Just 8 of the 50 stocks that make up Nifty 50 are gaining at this time. The remaining 42 stocks are declining.

ITC stock price lost more than 1% in the past 5 days

In the past 5 days, ITC shares have lost 1.15%. The company stands to gain from lower GST rates that came into force from 22^nd September. GST on a number of products that ITC sells, such as packaged chips, has been reduced to 5% from 12%. However, GST on cigarettes has not been reduced. Cigarettes will continue to be taxed at 28% plus compensation cess. This taxation of cigarettes will continue until GST compensation is paid off to states. After that cigarettes will move to the higher 40% GST tax bracket. In FY 25, cigarettes contributed to around 44% of the total revenue of the company.

Demand for FMCG stocks increases in times of uncertainty

ITC shares are also gaining today because of the increase in uncertainty and economic risks. This uncertainty increased further today, after US President Donald Trump imposed additional import tariffs on pharma products, kitchen products, upholstered furniture etc.

FMCG stocks such as ITC are considered to be less risky in times of increased uncertainty. The non-cyclical nature of demand for their products make them less vulnerable to economic risks and shocks.

Year-to-date, ITC’s share price is down by 16.26% in 2025. The company demerged its hotel business into a separate listed entity in February this year. This also has an impact on the performance of its stock this year.

Disclaimer : This content is only for informational purpose. It does not make any recommendation to act or invest.

Source: NSE