FMCG shares in demand; Marico, Godrej, Dabur, HUL rally up to 10%

The rural demand has seen gradual improvement and management of the companies expects visibility on green shoots on the back of better monsoons and higher infra spend by the Government of India.

Shares of fast moving consumer goods companies (FMCG) were in demand and rallied up to 10 per cent on the BSE in Tuesday’s intra-day trade in an otherwise subdued market on improved outlook.

Marico, Godrej Consumer Products, Dabur India, Hindustan Unilever, Bajaj Consumer Care, Colgate-Palmolive (India), ITC, Nestle India and Britannia Industries stocks rallied between 2 per cent and 10 per cent. At 10:20 am; the S&P BSE FMCG index, the top gainer among sectoral indices, was up 2.5 per cent, as compared to 0.4 per cent decline in the S&P BSE Sensex.

Given the comfort level in valuation and