FMCG index hits record high

ITC, Colgate-Palmolive, Jay Shree Tea, Tata Coffee and Marico were up more than 4% each.

Shares of fast moving consumer goods (FMCG) companies were in focus in morning deals, with the S&P BSE FMCG index rallied more than 3%, hitting a record high on BSE after the Goods and Services Tax (GST) Council, at its meeting in Srinagar on Thursday, approved rates for about 1,200 items.

At 09:21 am; the S&P BSE FMCG index, the largest gainer among sectoral indices, had rallied 3.4% at 9,774 as compared to 0.72% rise in the benchmark S&P BSE Sensex. The FMCG index hit a record high 9,804, surpassed its previous high of 9,646 touched on May 17, 2017 in intra-day deals.

ITC, Colgate-Palmolive (India), Jay Shree Tea, Tata Coffee and Marico were up more than 4%, while, Goodricke  Group, Tata Global Beverages and Godfrey Phillips India were up 4% each on the BSE. ITC, Hindustan Unilever, Avanti Feeds and Manpasand Beverages from the FMCG index hitting their respective record highs in intra-day deal.

According to reports, hair oil and toothpaste will be taxed at 18% under the GST, lower than the current tax incidence of about 23-24%, while sugar, tea, coffee and edible oil will be taxed at 5%. All capital and intermediate goods will be in the 18% tax slab, lower than the current 28%, a Business Standard report suggests. CLICK HERE TO READ FULL REPORT

The GST council has approved and passed the various tax rates to applicable for sector and since 81% of the goods are likely to be taxed at 18% or below has come as a comfort and markets might take it in a positive note, Angel Broking said in a client note.

The fact that several daily use items such as milk, fruits, vegetables and cereals & food grains will be exempted from all tax makes us believe that in fact inflation may not be an issue post implementation of GST, added note.

COMPANY	LATEST	PREV CLOSE	GAIN(%)
JAY SHREE TEA	106.55	100.40	6.13
COLGATE-PALM.	1037.95	979.40	5.98
TATA COFFEE	136.00	130.10	4.53
SOM DISTILLERIES	157.50	150.95	4.34
ANDREW YULE & CO	36.50	35.00	4.29
GOODRICKE GROUP	268.25	257.35	4.24
ITC	289.60	278.05	4.15
MARICO	317.75	305.70	3.94
DFM FOODS	1686.95	1624.60	3.84
TATA GLOBAL	152.90	147.50	3.66
VST INDS.	3071.00	2965.00	3.58
AVANTI FEEDS	1424.70	1381.00	3.16
GODFREY PHILLIPS	1278.90	1240.50	3.10
ADF FOODS	301.15	292.20	3.06
MCLEOD RUSSEL	181.20	175.85	3.04
BAJAJ HINDUSTHAN	16.30	15.85	2.84
KWALITY	147.25	143.25	2.79
EMAMI	1110.00	1080.50	2.73
BRITANNIA INDS.	3640.00	3554.40	2.41
HIND. UNILEVER	1010.50	987.40	2.34