 "FMCG index hits record high")
Shares of fast moving consumer goods (FMCG) companies were in focus in morning deals, with the S&P BSE FMCG index rallied more than 3%, hitting a record high on BSE after the Goods and Services Tax (GST) Council, at its meeting in Srinagar on Thursday, approved rates for about 1,200 items.
At 09:21 am; the S&P BSE FMCG index, the largest gainer among sectoral indices, had rallied 3.4% at 9,774 as compared to 0.72% rise in the benchmark S&P BSE Sensex. The FMCG index hit a record high 9,804, surpassed its previous high of 9,646 touched on May 17, 2017 in intra-day deals.
ITC, Colgate-Palmolive (India), Jay Shree Tea, Tata Coffee and Marico were up more than 4%, while, Goodricke Group, Tata Global Beverages and Godfrey Phillips India were up 4% each on the BSE. ITC, Hindustan Unilever, Avanti Feeds and Manpasand Beverages from the FMCG index hitting their respective record highs in intra-day deal.
According to reports, hair oil and toothpaste will be taxed at 18% under the GST, lower than the current tax incidence of about 23-24%, while sugar, tea, coffee and edible oil will be taxed at 5%. All capital and intermediate goods will be in the 18% tax slab, lower than the current 28%, a Business Standard report suggests. CLICK HERE TO READ FULL REPORT
The GST council has approved and passed the various tax rates to applicable for sector and since 81% of the goods are likely to be taxed at 18% or below has come as a comfort and markets might take it in a positive note, Angel Broking said in a client note.
The fact that several daily use items such as milk, fruits, vegetables and cereals & food grains will be exempted from all tax makes us believe that in fact inflation may not be an issue post implementation of GST, added note.
At 09:21 am; the S&P BSE FMCG index, the largest gainer among sectoral indices, had rallied 3.4% at 9,774 as compared to 0.72% rise in the benchmark S&P BSE Sensex. The FMCG index hit a record high 9,804, surpassed its previous high of 9,646 touched on May 17, 2017 in intra-day deals.
ITC, Colgate-Palmolive (India), Jay Shree Tea, Tata Coffee and Marico were up more than 4%, while, Goodricke Group, Tata Global Beverages and Godfrey Phillips India were up 4% each on the BSE. ITC, Hindustan Unilever, Avanti Feeds and Manpasand Beverages from the FMCG index hitting their respective record highs in intra-day deal.
According to reports, hair oil and toothpaste will be taxed at 18% under the GST, lower than the current tax incidence of about 23-24%, while sugar, tea, coffee and edible oil will be taxed at 5%. All capital and intermediate goods will be in the 18% tax slab, lower than the current 28%, a Business Standard report suggests. CLICK HERE TO READ FULL REPORT
The GST council has approved and passed the various tax rates to applicable for sector and since 81% of the goods are likely to be taxed at 18% or below has come as a comfort and markets might take it in a positive note, Angel Broking said in a client note.
The fact that several daily use items such as milk, fruits, vegetables and cereals & food grains will be exempted from all tax makes us believe that in fact inflation may not be an issue post implementation of GST, added note.
| COMPANY | LATEST | PREV CLOSE | GAIN(%) |
| JAY SHREE TEA | 106.55 | 100.40 | 6.13 |
| COLGATE-PALM. | 1037.95 | 979.40 | 5.98 |
| TATA COFFEE | 136.00 | 130.10 | 4.53 |
| SOM DISTILLERIES | 157.50 | 150.95 | 4.34 |
| ANDREW YULE & CO | 36.50 | 35.00 | 4.29 |
| GOODRICKE GROUP | 268.25 | 257.35 | 4.24 |
| ITC | 289.60 | 278.05 | 4.15 |
| MARICO | 317.75 | 305.70 | 3.94 |
| DFM FOODS | 1686.95 | 1624.60 | 3.84 |
| TATA GLOBAL | 152.90 | 147.50 | 3.66 |
| VST INDS. | 3071.00 | 2965.00 | 3.58 |
| AVANTI FEEDS | 1424.70 | 1381.00 | 3.16 |
| GODFREY PHILLIPS | 1278.90 | 1240.50 | 3.10 |
| ADF FOODS | 301.15 | 292.20 | 3.06 |
| MCLEOD RUSSEL | 181.20 | 175.85 | 3.04 |
| BAJAJ HINDUSTHAN | 16.30 | 15.85 | 2.84 |
| KWALITY | 147.25 | 143.25 | 2.79 |
| EMAMI | 1110.00 | 1080.50 | 2.73 |
| BRITANNIA INDS. | 3640.00 | 3554.40 | 2.41 |
| HIND. UNILEVER | 1010.50 | 987.40 | 2.34 |
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