Cigarette stocks witnessed heavy selling pressure on Monday, falling as much as 6.5 per cent, after a GST panel suggested 40 per cent tax rate for demerit goods like pan masala and tobacco.
Shares of ITC plunged 6.57 per cent to settle at Rs 313.55 on BSE. During the day, it tumbled 7.41 per cent to Rs 310.70.
Led by the dip in the stock, the company's market valuation fell by Rs 17,511.55 crore to Rs 2,51,857.45 crore.
The stock was the worst performer among the blue-chip Sensex and Nifty scrips.
Similar selling was seen in Godfrey Phillips which plunged 4.90 per cent and VST Industries, that dipped 2.85 per cent.
Golden Tobacco was down 0.56 per cent. Finance Ministry panel headed by CEA Arvind Subramanian has suggested a 'standard rate' of 17-18 per cent on bulk of the goods and services for the entire country.
It has recommended 40 per cent tax rate for demerit goods like luxury cars, aerated beverages, pan masala and tobacco.
The government plans to roll out Goods and Services Tax (GST) from April 1.
The final GST rate would be decided by the GST Council, which will be headed by the Union Finance Minister and have state Finance Ministers as its members. In the broader market, the Sensex ended with a loss of 108 points at 25,530.11.
