ITC, like after every Budget, remains a big loser. The stock fell by some 8% on Friday and today, though the fall is not so pronounced, it is down 4%. This means in two days, till now, it has lost 12%.

As expected in every Budget, this time too, excise duty on cigarettes was hiked. The FM on Friday, hiked excise duty on cigarettes by 25% for cigarettes of length not exceeding 65 mm, and by 15% for cigarettes of other lengths. And post this hike once again, fund houses have downgraded the rating for the stock.

Cigarette companies have to deal with this hypocrisy every single year; and this time around, not just excise duty hike, the company is also fearing the ban on sale of loose cigarettes. Thus to function in this regime is tough for this sector though the only solace being that smoking is an addiction, which despite rising prices, does not seem to be a dissuasion.