ITC shares fell sharply on Thursday, erasing over Rs 50,000 crore in market value after a steep new cigarette tax spooked investors. The excise hikeon top of GSTmay force price increases of 15% or more, raising risks of volume loss and a shift toward illicit trade, analysts warned.
Jefferies warned that the sharp hike in cigarette excise duty is clearly negative for ITC in the near term, likely hurting volumes and earnings. The brokerage called the move a major negative surprise for the legal cigarette industry, estimating over a 20% rise in effective tax incidence, and said it increases policy uncertainty despite its continued positive stance on ITC.
Domestic brokerage firm SBI Securities latest Dividend Yield Monitor highlights companies that have consistently rewarded shareholders with strong payouts over the past three years. A dividend yield is a financial ratio that shows how much a company pays out in dividends each year relative to its stock price. It is a key metric for investors, particularly those focused on income generation, as it indicates the return on investment strictly from dividends.
As investors begin planning for 2026, financial planners are urging them to adopt goal-based portfolio planning rather than randomly buying schemes with the short-term objective of earning high returns, ET Bureau reported.
Investors faced significant psychological challenges in 2025 due to extreme valuations and uneven market gains. Sandeep Tandon, CIO of Quant Mutual Fund, highlights the importance of emotional control and avoiding the trap of chasing momentum. While 2025 saw record highs, many portfolios suffered, especially in mid and smallcaps.
Mutual fund investors had a strong year in 2025, with the HSBC Brazil Fund emerging as the top-performing scheme. The fund delivered over 55% returns, turning a 1 lakh lump-sum invested at the start of the year into 1.55 lakh, while a 10,000 monthly SIP grew to 1.48 lakh with an XIRR of 46.45%, despite market volatility.
India's premium housing market experienced a strong performance in 2025. Capital values rose significantly, especially in under-construction projects. This trend was fueled by robust end-user demand, better infrastructure, and limited supply in prime areas. Experts predict this premium segment will remain buoyant in 2026, supported by wealth growth and improved transparency. Disciplined pricing and supply management are key for stability.
Sovereign wealth and public pension funds channelled a record share of capital into the United States in 2025, while emerging markets saw a sharp decline in inflows despite strong performance.
Tobacco stocks like ITC and Godfrey Phillips saw significant drops on Thursday. This follows the finance ministry's notification of an additional excise duty on tobacco products. The new levies, effective February 1, will be applied over and above the GST rate. This change replaces the existing compensation cess. Companies may need to increase prices due to these higher taxes.
