Nearly ₹12 lakh crore in wealth vanished in a single session
On March 19, 2026, ITC's share price slipped below ₹300 for the first time since August 2022, closing at ₹299.10 amid a broader Indian market collapse that erased nearly ₹12 lakh crore in a single session. The descent reflects a convergence of forces — government excise pressure on cigarettes, disappointing earnings, and the restless withdrawal of foreign capital — that together have stripped 40% from the stock's peak value. In the long arc of markets, such moments remind us that even the most established enterprises are not immune to the slow accumulation of headwinds, and that confidence, once eroded, rarely returns in a single day.
- ITC's stock breached the psychologically significant ₹300 threshold for the first time in nearly four years, deepening a year-to-date loss of over 25%.
- A government-imposed excise duty hike on cigarettes struck directly at ITC's primary revenue engine, while flat Q3 profits and rising raw material costs left little for investors to hold onto.
- The broader market amplified the pain — the BSE Sensex shed 2,497 points on Gudi Padwa, as foreign investors continued their sustained retreat from Indian equities.
- LIC, holding a 15.69% stake in ITC, now faces significant wealth erosion on one of its largest positions, raising questions about institutional exposure at a fragile moment.
- Brokerages have begun cutting target prices and competition is intensifying, leaving the stock without a clear near-term catalyst to reverse its slide.
On March 19, ITC's shares closed at ₹299.10 — below ₹300 for the first time since August 2022 — marking a third consecutive day of losses and a year-to-date decline of 25.66%. From its peak of ₹498.85, the stock has now fallen 40%, a contraction that has significantly reduced the company's once-formidable market capitalization.
The pressures behind the fall are layered. The government's additional excise duty on cigarettes — ITC's core revenue source — dealt an early blow, while the December quarter results offered little reassurance. Net profit was essentially flat at ₹5,018 crore, and though revenue and operating margins showed modest improvement, rising raw material costs and a one-time labour code charge of ₹354.58 crore dulled the numbers. Brokerages responded by trimming their target prices, and competitive pressures continued to mount.
Thursday's decline unfolded against a dramatic market backdrop. The BSE Sensex plunged over 2,497 points and the Nifty 50 fell 776 points, as global uncertainty, rising crude prices, and foreign investor selling combined to erase nearly ₹12 lakh crore in a single session. ITC was far from alone in its suffering, but its fall carried particular weight.
For LIC, which holds a 15.69% stake in ITC, the erosion translates into direct losses on one of its most significant holdings. Whether the stock finds a floor near these levels or continues lower may depend as much on broader market sentiment as on anything ITC itself can control. The breach of ₹300 — a number that carries meaning beyond arithmetic — has left investors wondering if the worst is behind them, or still ahead.
On Thursday, March 19, ITC's stock price slipped below ₹300 for the first time in nearly four years. The shares closed at ₹299.10, marking the third consecutive day of losses and a fresh low not seen since August 2022. It was a small number on a screen, but it carried weight: the stock had shed 4.5% of its value in March alone, and 25.66% since the start of the year.
The decline is part of a longer unraveling. After finishing 2025 down 12%, ITC extended that weakness into 2026 with a 21% drop in January and another 3% in February. From its peak of ₹498.85, the stock has fallen 40%. The company's market capitalization, once valued at ₹6,25,144 crore, has contracted sharply. Among the fifty largest companies tracked by the Nifty index, ITC ranks among the worst performers this year.
Several pressures have converged to hollow out investor confidence. The government's decision to impose additional excise duty on cigarettes struck at the heart of ITC's business—cigarettes generate the majority of the company's revenue. At the same time, the December quarter results disappointed. The company posted a consolidated net profit of ₹5,018 crore, essentially flat compared to ₹5,013 crore in the same quarter the previous year. Revenue from operations grew 6.7% year-over-year to ₹21,706 crore, and operating profit expanded 8.17% to ₹6,882 crore with margins improving by 50 basis points to 31.7%. Yet the numbers felt hollow against the headwinds. Raw material costs had risen, and the company absorbed a one-time charge of ₹354.58 crore related to new labour codes. Brokerages began cutting their target prices. Competition intensified.
Thursday's fall was not ITC's alone. The entire Indian equity market convulsed on the auspicious occasion of Gudi Padwa. The BSE Sensex plunged 2,497 points, or 3.26%, to close at 74,207. The NSE Nifty 50 dropped 776 points to 23,002. Nearly ₹12 lakh crore in investor wealth evaporated in a single session. Global uncertainties, climbing crude oil prices, and sustained selling by foreign investors all contributed to the rout.
For Life Insurance Corporation of India, which held a 15.69% stake in ITC at the end of the December quarter, the erosion has been substantial. Every rupee of decline in the stock price translates directly into losses on one of LIC's largest holdings. The question now is whether the selling has exhausted itself or whether further pressure awaits. The stock's breach of the ₹300 level—a psychological threshold—may signal to some investors that worse is yet to come.
Citações Notáveis
The stock has fallen 40% from its record high and 26% lower than its 2026 high— Market data
A Conversa do Hearth Outra perspectiva sobre a história
Why did ITC fall so sharply when its actual earnings look reasonably solid—revenue up, margins improving?
Because the market isn't pricing the company on what it earned last quarter. It's pricing it on what it fears will happen next. The excise duty hike directly threatens the cigarette business, which is where most of the money comes from. Brokers are cutting targets. That's a signal.
So this is about the future, not the past.
Exactly. The December results were fine, even decent. But they came wrapped in bad news—higher costs, a big one-time charge, and a government policy that squeezes margins. The market reads that as a warning.
What about the broader crash? Is ITC just getting swept up in panic selling?
Partly. When foreign investors start pulling money out and crude oil spikes, everything gets hit. But ITC is getting hit harder than most. That tells you the stock had specific problems before Thursday's crash even happened.
LIC owns 15.69% of the company. Are they likely to sell?
That's the question everyone's asking. If LIC starts dumping shares to cut losses, it could accelerate the decline. But LIC is a long-term holder. They're more likely to absorb the loss and wait.
Where does the stock find a floor?
That's unknowable right now. It depends on whether the excise duty impact proves as severe as feared, whether the broader market stabilizes, and whether foreign investors stop selling. The August 2022 low of ₹299 is now the reference point. Below that, you're in uncharted territory for this stock.