The news surrounding ITC is overwhelmingly negative, primarily driven by the government's decision to increase excise duties on cigarettes and tobacco products. This has triggered a significant drop in ITC's stock price, reaching multi-month lows. The increased tax burden is expected to weigh on the company's sales volumes and profitability, as it may lead to higher prices for consumers and potentially drive them towards the illicit cigarette market. The combined effect of the excise duty hike and a large block deal has further dampened investor sentiment. Brokerages are anticipating that ITC will increase prices to offset the duty increases which could further reduce sales. This will make ITC less attractive in the short-term. However, it's important to consider ITC's diversified business portfolio, which includes FMCG, hotels, and agribusiness. While the cigarette business will likely face challenges, other segments may provide some buffer. The company's ability to effectively manage costs, optimize its product mix, and explore new growth opportunities in its other business segments will be crucial in mitigating the negative impact of the excise duty hike on its overall financial performance. The long-term outlook will depend on how well ITC adapts to the changing regulatory environment and leverages its diversified business model to drive sustainable growth. The historical trend of DII and FII investments should also be monitored to gauge long-term sentiment. Given these factors, the immediate outlook for ITC's stock appears bearish due to the excise duty hike, but the company's diversified business and long-term strategies could potentially offer some resilience. Investors should closely monitor the company's performance in the coming quarters to assess the full impact of the tax increase and its ability to navigate these challenges.