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Last Updated : Feb 01, 2020 11:06 AM IST | Source: Moneycontrol.com

D-Street Buzz: FMCG stocks jump ahead of Union Budget; HUL, ITC, Emami among top support

In terms of index contribution, HUL, ITC, Godrej Corp, Emami, Colgate and GlaxoSmithKline Consumer Healthcare were at the top.

 
 
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Most FMCG stocks, including Emami, Hindustan Unilever and ITC were trading higher in morning trade on February 1 ahead of the Union Budget 2020.

While the shares of some companies were up in the wake of their December quarter earnings, a broader expectation that the Finance Minister will announce some relief on the front of income tax, also boosted the consumer stocks.

A cut in income tax rates will give more disposable income to consumers which can boost consumer demand, experts point out.

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Boosting consumer demand is among the top themes that have been widely discussed by experts to stem the economic slowdown, and economists have been suggesting a cut in the personal income tax rate is the need of the hour.

Brokerages say lower tax slabs would drive up discretionary spending and will be positive for all consumer discretionary companies, including branded apparel, FMCG, footwear companies, and hotels and restaurants.

Around 11:00 hours IST, the BSE FMCG index was up 1.10 percent up at 11,769.30, with 36 stocks in the green, 23 in the red and 3 unchanged.

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In terms of index contribution, HUL, ITC, Godrej Corp, Emami, Colgate and GlaxoSmithKline Consumer Healthcare were at the top.

On the flip side, Britannia, VST Industries and Future Consumer were among the top drags on the index at that time.
First Published on Feb 1, 2020 11:06 am
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