New Delhi, Jan. 1 -- Shares of cigarette companies ITC and Godfrey Phillips slumped by up to 19% in Thursday's trade (January 1), after the government imposed an excise duty on cigarettes, effective next month onwards.

The excise duty will be imposed in the range of Rs.2,050-8,500 per thousand sticks based on the length of the products from February 1, the Finance Ministry order said late on Wednesday.

The move could increase the prices of cigarettes, thus impacting the sales for ITC and other cigarette producers.

Following this announcement, ITC shares cracked as much as 10% on the BSE to hit the 52-week low of Rs.362.70.

Additionally, a block deal in ITC shares further pressured the stock, according to multiple media reports. CNBC T...