BackFMCG stocks continue rally on GST push, jump up to 14%
FMCG stocks surge after the GST Council finalised rates for bulk of the items last week
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New Delhi: FMCG stocks extended their rally for the second straight session on Monday, surging up to 14%, after the GST Council finalised rates for bulk of the items last week. Shares of LT Foods soared 13.84%, ITC (6.21%), Venkys (5%), Kohinoor (4.34%), Marico (1.79%), Britannia (1.31%), HUL (1.07%) and Dabur (0.54%) on BSE.
ITC was the best performer among the 30-Sensex stocks. The BSE FMCG index rose by 3.09% to settle at 9,924.68. These stocks had gained on Friday also.
“The GST euphoria extended in consumer staples and FMCG while cautiousness in global market and volatility in commodity price impacted the gain," said Vinod Nair, head of research, Geojit Financial Services Ltd.
“With the government focus on keeping tax on items of mass consumption low, this sector (FMCG) could be the clear winner," said Vaibhav Agrawal, Head of Research and ARQ, Angel Broking.
The GST Council has kept commonly used products like hair oil, soaps and toothpaste at 18%. These items at present attract 22-24% tax incidence through a combination of central and state government levies. The 30-share key index ended the day 106.05 points higher at 30,570.97.
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