Morgan Stanley Downgrades ITC Stock to Equalweight on Excise Duty Hike
Morgan Stanley Downgrades ITC Stock to Equalweight on Excise Duty Hike
Morgan Stanley has downgraded ITC stock to Equalweight on excise duty hike. This decision was made after the Indian government announced an increase in excise duty on various products, including cigarettes and other consumer goods.
Background
The Indian government has been implementing various measures to increase revenue and reduce the country's fiscal deficit. One such measure is the increase in excise duty on various products. This move is expected to have a significant impact on companies like ITC, which has a large presence in the consumer goods sector.
Impact on ITC Stock
The downgrade by Morgan Stanley is likely to have a negative impact on ITC stock. The company's stock price has already been under pressure due to the increasing competition in the consumer goods sector. The excise duty hike is expected to further reduce the company's profitability, leading to a decline in its stock price.
Analyst's View
According to Morgan Stanley, the excise duty hike is a significant negative for ITC. The company's management has been trying to pass on the increased costs to consumers, but this may not be possible in the current market scenario. The analyst has downgraded the stock to Equalweight, indicating that it is neither a strong buy nor a sell.
Conclusion
The downgrade by Morgan Stanley is a significant development for ITC stock. The company's stock price is likely to decline in the short term due to the increasing competition and the excise duty hike. However, the long-term prospects of the company remain uncertain and will depend on various factors, including the government's policies and the company's ability to adapt to the changing market scenario.
Sources
[1] Morgan Stanley downgrades ITC stock to Equalweight on excise duty hike
[2] Philippines manufacturing sector shows recovery signs in December
[3] Taiwan manufacturing sector returns to growth at end of 2025