Shares of FMCG companies today witnessed a smart rally on the Bombay Stock Exchange, led by a nearly five-per cent surge in ITC, fuelled by expectations of higher sales during the peak festive season.
Shares of the food-to-cigarette major ITC settled the day 4.93 per cent higher at Rs 176.60. During the day, the scrip had hit a 52-week high of Rs 178.30, reflecting a gain of 5.94 per cent from the previous close.
The scrip witnessed a similar upsurge on the National Stock Exchange and finished the day with a gain of 5.55 per cent at Rs 177.70. About 1.61 crore shares exchanged hands on the bourses.
"Good monsoon and the upcoming peak festive season are the major drivers for the FMCG companies as their margins may improve significantly with the increased demand. Besides, the positive investor sentiment amid a firm broader market is taking the stocks higher," CNI Research CMD Kishore P Ostwal said.
ITC emerged as the second biggest gainer on the Sensex and became the biggest contributor in the overall gain of the BSE-30 benchmark with addition of 56.82 percentage points.
Meanwhile, the Sensex rallied by 311.35 points to close at a 32-month record high of 19,906.10 points.
Another FMCG gaint Hindustan Unilever (HUL) ended 3.79 per cent higher at Rs 292.75.
The rise in consumer goods stocks pushed the BSE FMCG index 125 points up to close 3,687.89, becoming the biggest gainer among the 13 sectoral indices.
Among other FMCG gainers were -- Colgate Palmolive (4.53 per cent), Dabur India (1.5 per cent) and Nestle India (1.61 per cent).