Shares of consumer goods, textile firms rise on sop extension

Shares of consumer goods and textile companies today rallied around 6 per cent on the Bombay Stock Exchange, after the government extended sops for exporters hit by fragile recovery in global markets.

Shares of Gitanjali Gems climbed 6.12 per cent to Rs 220.05 in afternoon trade on the Bombay Stock Exchange.

Titan Industries zoomed 5.6 per cent to hit a high of Rs 3,022 and Videocon Industries by 4.1 per cent to Rs 253.20.

The rise in sectoral stocks pushed the BSE consumer goods index higher by about 215 points to 5,906.48 points in afternoon trade. The BSE consumer goods index was the top gainer among the 13 sectoral indices.

Among the leading textile firms, shares of Bombay Dyeing advanced 1.52 per cent to Rs 655.80 and Century Industries 2.8 per cent to Rs 522.15.

The rise in these shares was significant since broader market benchmark Sensex was trading lower by 20.14 points at 18,381.68 in mid-session.

The government today said sops would continue for exporters in sectors like capital goods and textiles to help them mitigate the impact of "fragile" recovery of global economy.

Aiming to provide some relief to exporters hurt by global slowdown, the government extended DEPB (Duty Entitlement Pass Book) scheme for six months or till June 30, 2011. Under this scheme, the government reimburses duties on imported inputs used in exports.

It also announced extension of zero duty EPCG (Export Promotion for Capital Goods) for one more year, that is till March 31, 2011, and SHI (Status Holders Incentive) scheme for one more year till March 31, 2011.