On the 30-stock Sensex, declines were led by ITC, Bajaj Finance, Asian Paints, Bharat Electronics and ICICI Bank, with losses ranging from about 0.4% to nearly 10%.
Broader market moves were mixed. Smallcap stocks slipped 0.1%, while midcaps outperformed, rising 0.4%.
Shares of cigarette makers were hit particularly hard after the government announced an increase in excise duty on cigarettes effective February. ITC fell 9.7%, while Godfrey Phillips plunged 17.1%. Analysts at Jefferies described the tax hike as “a clear negative” for market leader ITC, warning that it could weigh on cigarette volumes and reignite concerns over market-share losses to the illicit trade.
The sell-off in ITC dragged the fast-moving consumer goods index down 3.2%.
Indian equities posted solid gains in 2025, with the Sensex and Nifty rising 9.1% and 10.5%, respectively, though both underperformed their emerging-market and Asian peers.
Global Markets Updates
- The S&P 500 fell 0.7% as of 4:02 p.m. New York time
- The Nasdaq 100 fell 0.8%
- The Dow Jones Industrial Average fell 0.6%
- The MSCI World Index fell 0.6%