India, Jan. 2 -- India's largest cigarette maker ITC Ltd. wiped out nearly $7 billion (~ Rs.63,000 crore) in market capitalisation after the government's cigarette "tax shock" stoked concerns on profitability.

ITC's share price fell as much as 5.11% to Rs.345.35-the lowest since February 2023-extending a near-10% slide from the previous session.

That, after at least eleven brokerages, including Goldman Sachs Group Inc., JPMorgan Chase & Co. and Morgan Stanley, downgraded the stock after the government hiked excise duty on cigarettes this week. The stock could see more pressure in the near term on the 'big tax shock", Jefferies wrote in a note, downgrading the stock to hold from buy.

From 1 February 2026, cigarettes will be charged an e...