Shares of consumption names such as Hindustan Unilever (HUL) and Pidilite Industries gained nearly a per cent each to hit their 52-week highs of Rs 1,888.95 and Rs 1,399.80, repectively in the early morning deals on Tuesday.
The stocks, however, pared their gains and were trading flat at 09:52 am. In comparison, the S&P BSE Sensex was ruling 83 points or 0.22 per cent higher at 37,577.
Britannia Industries, on the other hand, was trading nearly 5 per cent higher at Rs 2,656 apiece on the BSE. The Nifty Consumption index was trading nearly a per cent higher at 4,673.05 levels.
The government, on Friday, announced a number of measures to boost demand in the economy. These measures, as per experts, should lead to a turnaround on sentiment and it may have come just in time to boost consumption patterns in the festive season.
The provision for higher tax surcharge on super-rich individuals and trusts is being removed. This should help reverse some of the pessimism as it affected many FIIs. In addition, the government has announced a few measures to try and encourage loan disbursal from banks and NBFCs, including HFCs, while trying to ensure lower cost of capital for borrowers. READ MORE
Besides, most brokerages have pinned hopes on festive season for revival in consumption demand. They believe the ongoing phase of moderation in growth is temporary and expect the demand to revive in the coming quarters, from the beginning of the festive season in September. CLICK TO READ FULL ARTICLE