India, Jan. 1 -- Indian tobacco stocks tumbled on Thursday after the Indian government announced a fresh excise duty on cigarettes, a move expected to make smoking more expensive for nearly 100 million users in the country.

Market leader ITC, which owns the Gold Flake brand, dropped over 9 percent and touched its lowest level since April 2023, marking its worst trading session in almost six years.

Godfrey Phillips India, the distributor of Marlboro, plunged more than 14 percent, recording its steepest fall since November 2016. ITC emerged as the biggest drag on the Nifty 50 and also led declines in the FMCG index.

The finance ministry has introduced a new excise duty ranging from 2,050 rupees to 8,500 rupees per 1,000 cigarette sticks,...