Sensex gains; FMCG firms lead, banks hit

Reuters Market Eye - The BSE Sensex gains 0.26 percent while the broader Nifty is up 0.08 percent, supported by gains in FMCG stocks after Hindustan Unilever surged on open offer from its parent company.

Hindustan Unilever gains 17.55 percent after Anglo-Dutch consumer goods giant Unilever Plc offered to pay as much as $5.4 billion to raise its stake in its Indian unit, banking on fast-growing spending power in Asia's third-largest economy.

Other FMCG stocks like Colgate-Palmolive (India) Ltd rises 5.84 percent and ITC Ltd up 2.66 percent.

Weighing down the market is selling in banking stocks on caution ahead of the central bank's monetary policy review later this week.

 

Lenders like State Bank of India Ltd down 1.7 percent and HDFC Bank lower 2.14 percent on caution ahead of the RBI policy review on May 3.

The markets will be closed on Wednesday for May Day.

(Reporting by Archana Narayanan)