GST: FMCG stocks rise on lower tax

Market participants said GST will provide much-needed impetus for FMCG firms

FMCG stocks saw a positive movement on Friday as investors cheered the possibility of consumer goods becoming cheaper after the implementation of the GST. The BSE index for the FMCG sector gained 1.9% to close at 9,627 even as the benchmark indices closed flat on Thursday. On the other hand, all the other major sectoral indices closed in the red.

Among the FMCG companies, shares of Colgate-Palmolive India soared 3.6% — the best by any company that is a part of the FMCG index. Shares of ITC  and Emami closed 2.8% and 2.4% higher. This rally of ITC shares also