Shares of FMCG companies shot up after Finance Minister Nirmala Sitharaman announced a Rs 1.7 lakh crore Gareeb Kalyan Yojana to help the poor tide over the coronavirus lockdown.
The Nifty FMCG index surged 5.44% to 25,802.40, extending its winning run to third consecutive trading session. The index has surged 11.29% in last three trading sessions from its previous closing low of 23,184.05 posted on 23 March 2020.FMCG shares were in demand on anticipation that the government's fiscal package may boost FMCG sales in rural India.
Marico (up 7.35%), Hindustan Unilever (up 7.03%), Godrej Consumer Products (up 6.98%), United Spirits (up 6.72%), ITC (up 6.38%), Britannia Inds (up 6.14%), Emami (up 5.58%), Dabur (up 5.05%), Colgate Palmolive (up 4.48%), Procter & Gamble Hygiene and Health Care (up 3.16%), Godrej Industries (up 1.87%), United Breweries (up 1.17%), Tata Consumer Products (up 0.9%) and Jubilant Foodworks (up 0.57%) were top gainers in Nifty FMCG index.
The Nifty FMCG index has slumped 21% from its 52-week high of 32,644.9 hit on 4 November 2019.
The Nifty 50 has tanked 30.4% from its 52-week high of 12,430.5 hit on 20 January 2020.
FM briefed the media in Delhi today. FM said that a package worth Rs 1.7 lakh crore is ready for the poor who need immediate help like migrant workers and urban and rural poor.
FM announced Pradhan Mantri Gareeb Kalyan Ann Yojna (for next 3 months) in which 80 crore poor people (2/3rd of India's population) are covered. In addition to already allotted 5 kg of rice/wheat per person, an additional 5 kg will be allotted free. Additional 1 kg pulse (according to regional preference) will be given.
FM added that 8.69 crore farmers will be immediately benefited through "direct cash transfers". Installment of Rs 2,000 in the first week of April will be transferred, FM added.
For old age, divyang, pensioners (3 crore people covered), one-time amount of additional Rs 1000 in two installments through direct bank transfer (DBT) (hence no middlemen) over 3 months will be given.
FM announced an increase of Rs 2000 per worker on average as additional income in MGNREGA (5 crore families benefited).
FM said 20 crore women Jan Dhan Yojana account holders will get Rs 500 per month for the next three months.
The government will provide free LPG cylinders to woman beneficiaries of Ujjwala scheme. This will benefit 8.3 crore below poverty line (BPL) families.
FM also announced a Rs 50 lakh insurance per healthcare worker as a medical insurance cover for them for three months.
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