The Indian stock market witnessed a surge today as ITC Limited, a leading conglomerate with a significant presence in the tobacco industry, saw its share price climb by over 5%.
The rally was triggered by the Union Budget’s decision to maintain the existing tax structure for tobacco products.
The tobacco industry has been under constant pressure due to increasing taxation in recent years. The industry has been advocating for a stable tax regime to support investments and growth. Today’s announcement has brought much-needed relief to the sector, boosting investor confidence in ITC.
The broader Fast-Moving Consumer Goods (FMCG) sector also benefited from the positive sentiment. The Nifty FMCG index, which comprises leading FMCG companies, rose by 2.7%, indicating a wider market impact.