FMCG stocks: The shares of fast-moving consumer goods (FMCG) makers such as Colgate, Britannia, Hindustan Unilever and ITC, among others, traded on a firm note on Friday in an otherwise muted Indian stock market. The gains in these FMCG stocks came as media reports suggested that the government is looking to slash goods and services tax (GST) on select consumer products to 5%.
According to a CNBC-TV 18 report, the central government has proposed lowering GST on face powder, hair oil, shampoo, toothpaste and soaps to 5%, thus driving a rise in stocks of these companies.
Colgate share price rose as much as 4% to the day’s high of ₹2,357.90 on the NSE. Britannia, ITC, Dabur, Patanjali Foods, Emami and Marico emerged as other top gainers, rising between 2% and 3%.
As a result, the Nifty FMCG index jumped as much as 1.7% to 56,565 in intraday deals today. Despite the hefty stock market selloff seen in the Indian stock market this week, the FMCG index has managed to eke out a nearly 1.5% gain, suggesting underlying investor interest in the sector amid GST rationalisation hopes.
