Tobacco Companies Drag Down Indian Stocks on Proposed Sin Levy
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India’s benchmark stock index fell to a three-week low as cigarette makers declined on concern they will be taxed higher than the proposed national sales tax.
ITC Ltd., the largest tobacco company with the fourth-highest weighting on the S&P BSE Sensex index, was the biggest decliner on the 30-stock gauge. Rival Godfrey Phillips India Ltd. capped its steepest two-day decline since February, while VST Industries Ltd., which makes the Charminar brand of cigarettes, tumbled the most since August. Coal India Ltd., the world’s largest producer of the fuel, retreated to a one-month low.