Fast-moving consumer goods (FMCG) shares came under selling pressure on Friday, falling up to 3 percent, as investors booked profits after a five-session rally.
Varun Beverages was the top loser, slipping nearly 4 percent. ITC dropped 2.5 percent, while Emami and Colgate Palmolive (India) declined 1.79 percent and 1.52 percent, respectively.
Other major laggards included Patanjali Foods, Dabur India, Hindustan Unilever, Godrej Consumer Products and Nestle India, which fell up to 1.5 percent.
The Nifty FMCG index declined about 2 percent, making it one of the top sectoral losers of the day. The index had gained nearly 3 percent over the last five sessions following the GST Council’s decision on Wednesday to rationalise rates.
The Council approved limiting slabs to 5 percent and 18 percent, effective from September 22, bringing down prices of commonly used items such as food products, personal care items, ice creams and consumer durables.
After the sharp run-up, market participants booked profits, leading to a pause in the rally.
The index mirrored the larger fall in the benchmark indices which gave up early gains, with the Sensex dropping 700 points from its day’s high and the Nifty slipping below the 24,650 level, as investors booked profits.
Sensex, which climbed 318.55 points to 81,036.56 in early trade following GST rate cut announcements and firm global cues, retreated to 80,353. The broader Nifty fell to 24,633 after breaching the 24,700 mark.
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