VST Industries tanks 19% on hike in excise duty on tobacco

Shares in cigarettes and tobacco products maker VST Industries has tanked 19% to Rs 1,430 after the Finance Minister Arun Jaitley, in his budget speech, announced an increased excise duty on tobacco.

The stock opened at Rs 1,774 and touched a high of Rs 1,820 on the NSE. A combined 62,730 shares changed hands on the counter so far on NSE and BSE.

Finance Minister Arun Jaitley on Thursday increased excise duties on cigarettes and other tobacco products from 11% and 72%.

Jaitley has also hiked excise duty on gutka from 60% to 70%, making gutka costlier. The excise duty on pan masala has been hiked too, making pan masala costlier.

Godfrey Phillips India (down 5% at Rs 2,598) and ITC (down 0.19% at Rs 341) are among others too trading lower on NSE.