Heavy selling in FMCG major ITC BSE -12.57 % was witnessed with benchmark equity indices opening nearly at 1 per cent down.
The BSE Sensex opened 299.24 points, or 0.93% down at 31,775.54, while NSE Nifty index opened 83.25 points, or 0.84%, down at 9832.70.
GST Council on Monday (17.07.2017) raised the cess on cigarettes to take away an estimated Rs 5,000 crore, an annual windfall the manufacturers could have reaped from lower GST rates.
However, cigarette prices will not change as a result of the increased cess, which became effective from midnight. This has resulted in ITC being recorded as the top loser in the Nifty Index today, with a fall of over 12 per cent.