FMCG stocks continue rally on GST push; jump up to 14%

FMCG stocks extended their rally

for the second straight session today, surging up to 14 per

cent, after the GST Council finalised rates for bulk of the

items last week.

Shares of LT Foods soared 13.84 per cent, ITC (6.21 pc),

Venkys (5 pc), Kohinoor (4.34 pc), Marico (1.79 pc), Britannia

(1.31 pc), HUL (1.07 pc) and Dabur (0.54 pc) on BSE.

ITC was the best performer among the 30-Sensex stocks.

The BSE FMCG index rose by 3.09 per cent 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 per cent.

These items at present attract 22-24 per cent 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.

(This article has not been edited by DNA's editorial team and is auto-generated from an agency feed.)