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FMCG shares in demand; CNX FMCG index up 3%

ITC, Colgate-Palmolive, Marico, Gillette India, Jubilant Foodworks and Godrej Consumer are up 2-7% on NSE.

SI Reporter  |  Mumbai 

Shares of fast moving consumer goods companies (FMCG) are in demand and trading higher by up to 7% in otherwise subdued market.

ITC, Colgate-Palmolive, Marico, Gillette India, Jubilant Foodworks and Godrej Consumer Products are up 2-7%. Hindustan Unilever was up nearly 1% at Rs 766, hit new high of Rs 774 during intra-day trade on the National Stock Exchange (NSE).

The NSE CNX FMCG index, the largest gainer among sectoral indices, up nearly 3% to 20,033 compared to 0.15% rise in the benchmark CNX Nifty at 1415 hours.

Colgate-Palmolive (India) has surged 5% to Rs 1,877, also its record high on NSE, after reporting an 18% increase in net profit at Rs 130 crore for the second quarter ended September 30, 2014, on back of strong volume growth. The company had posted a net profit of Rs 110 crore for the same period of previous fiscal.

The company posted a volume growth of 7% for the quarter on toothpaste and continued to enhance its leadership position in toothpaste category by registering a volume market share of 56.7% for the period Jan'14-Sep'14, an increase of 80 basis points over the same period of the previous year, the statement said.

ITC rallied 4% to Rs 369 on back of heavy volumes after Harsh Vardhan on Sunday replaced by senior Bharatiya Janata Party (BJP) leader Jagat Prakash Nadda as the union health minister.

A combined 11.9 million shares changed hands against an average sub 6 million shares that were traded daily in past two weeks on NSE and BSE.

Shares of ITC underperformed the market in post-poll rally. The stock declined 3.3% from Rs 368 on May 15 to Rs 356 till yesterday. The benchmark CNX Nifty rallied 16% during the same period. The stock touched a low of Rs 314 on June 23, 2014.

Among the other individual stocks, Gillette India zoomed 8% to 3,244, also its new high, while Marico (up 3% at Rs 317) and Godrej Consumer Products (2% at Rs 940) on NSE.

First Published: Mon, November 10 2014. 14:18 IST