Twelve FMCG stocks rose 0.55% to 16.26% at 11:32 IST on BSE as Anglo-Dutch FMCG major Unilever Plc's plan to raise stake in Hindustan Unilever boosted sentiment in the FMCG sector.
Hindustan Unilever (up 16.26%), Colgate-Palmolive (India) (up 5.83%), Nestle India (up 5.80%), Procter & Gamble Hygiene & Healthcare (up 3.83%), GlaxoSmithKline Consumer Healthcare (up 3.37%), Dabur India (up 2.79%), Marico (up 2.54%), Bajaj Corp (up 2.24%), Britannia Industries (up 2.10%), Jyothy Laboratories (up 2.03%), ITC (up 1.36%) and Godrej Consumer Products (up 0.55%), edged higher.
The S&P BSE FMCG index surged 4.54% to 6541.39. It outperformed the Sensex, which was up 0.07% at 19,401.63.
The S&P BSE FMCG index had outperformed the market over the past one month till 29 April 2013, rising 5.71% compared with the Sensex's 2.93% rise. The index had also outperformed the market in past one quarter, rising 6.35% as against Sensex's 3.02% fall.
Hindustan Unilever's (HUL) foreign parent Unilever Plc has made an open offer to acquire 22.52% stake in HUL at Rs 600 per share. Anglo-Dutch company Unilever Plc, along with Unilever N.V., will acquire about 48.70 crore shares, or 22.52% stake, of HUL. The parent company will buy the shares for Rs 600 each, which is a 20.5% premium to HUL's Monday's closing price of Rs 497.60 on BSE.
As on 31 March 2013, foreign promoters held 52.48% stake in HUL. After the open offer, holding of foreign promoters will rise to 75% in HUL.
FMCG stocks also rose after the India Meteorological Department (IMD) on Friday, 26 April 2013, forecast normal southwest monsoon seasonal rainfall during 2013. FMCG firms derive substantial sales from rural India.
The year 2013 will most likely have a normal southwest monsoon seasonal rainfall for the country as a whole i.e. 96 to 104% of Long Average during June to September, the Union Minister of Earth Sciences & Science and Technology Mr. S. Jaipal Reddy announced on Friday, 26 April 2013. Quantitatively, the monsoon seasonal rainfall is likely to be 98% of the Long Period Average with a model error of 5%. Also, the probability for normal rainfall is 46%, as against the climatological value of 33%.
The IMD will issue the update forecast in June 2013 as a part of the second stage forecast. Along with the update forecast, separate forecasts for the monthly (July and August) rainfall over the country as a whole and seasonal (June-September) rainfall over the four geographical regions of India will be issued.
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