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Plunge in ITC stocks ends market dream run; Sensex loses 363 points to close below 32,000, Nifty tanks 88 points

The slip in Sensex and Nifty was triggered by the steep plunge in ITC Ltd stocks after the GST Council yesterday hiked tax on cigarettes.

Written by: India TV Business Desk, New Delhi [ Published on: July 18, 2017 18:02 IST ]
Sensex today lost 363 points to close below 32,000
Sensex today lost 363 points to close below 32,000

The market bull run ended today with market benchmark BSE Sensex crashing 363.79 points to close at 31,710.99 points on Tuesday. The wider Nifty of the National Stock Exchange (NSE) shed 88.80 points, or 0.90 per cent, to end provisionally at 9,827.15 points. The slip was triggered by the steep plunge in ITC Ltd stocks after the GST Council yesterday hiked tax on cigarettes. Shares of ITC Ltd emerged worst performers among the Sensex and Nifty components by crashing 12.63 per cent to Rs 284.60 on the BSE. ON NSE, the FMCG company lost 12.44 per cent in values to close at Rs 284.70 per share.

Other cigarette stocks, Godfrey Phillips and VST Industries, also tanked by up to 7.83 per cent. The S&P BSE FMCG index plunged by 651.93 points or 6.12 per cent.

Sentiment was hurt after the GST Council raised the tax on cigarettes to take away an estimated Rs 5,000 crore annual "windfall" manufacturers could have reaped from lower GST rates. However, buying in IT, tech, healthcare, auto and banking helped the index trim losses.

The market was also pulled down by negative European and mixed Asian peers as setbacks for a health care overhaul in the US raised doubts over prospects for a range of reforms backed by President Donald Trump.

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