Analysts bet on rural economy theme; Nifty FMCG index hits new high

Analysts remain bullish on rural economy and consumption space, given MSP hike, monsoon

Shares of fast-moving consumer goods (FMCG) ended higher for the second straight session on expectations of a rise in rural consumption, after the Union Cabinet on Wednesday approved a hike in minimum support prices (MSP) for Kharif crops by 1.5 times the input cost, for the 2018-19 season.

The Nifty FMCG index hit a new high of 29,520 on the National Stock Exchange (NSE) in intra-day trade on Thursday, surpassing its previous high of 29,161 recorded on June 13. The FMCG index was the largest gainer among sectoral indices, up 1 per cent at 29,399 points, as compared to a 0.19