This pullback came after a strong run-up in recent weeks. Between August 13 and September 5, the Nifty FMCG index gained 2.1%, which was supported by buying in consumer staples ahead of the festive season and in the run-up to Prime Minister Narendra Modi’s Independence Day address.
Colgate-Palmolive (+12.2%) and Britannia (+12.0%) led the gains during this period, followed by Nestle India (+9.7%), Dabur (+8.6%), and Hindustan Unilever (+5.8%).
Mid-sized players such as Emami (+3.8%), Marico (+3.1%), Godrej Consumer (+3.0%), and Tata Consumer (+1.6%) also rose, while United Spirits added a modest 0.5%.On the other hand, beverage and liquor counters dragged the index. Varun Beverages slumped 7.2%, United Breweries fell 4.7%, while ITC (-2.1%), Patanjali Foods (-0.4%), and Radico Khaitan (-0.4%) also ended lower.
| Stock | Return between Aug 13 and Sept 5 (%) |
|---|---|
| Colgate-Palmolive (India) | +12.2 |
| Britannia Industries | +11.99 |
| Nestle India | 9.7 |
| Dabur India | +8.6 |
| Hindustan Unilever | +5.8 |
| EMAMI LTD | +3.8 |
| Marico Ltd | +3.1 |
| Godrej Consumer Products | +3.0 |
| Tata Consumer Products | +1.6 |
| United Spirits | +0.5 |
| Radico Khaitan | -0.4 |
| Patanjali Foods | -0.4 |
| ITC Ltd | -2.1 |
| United Breweries | -4.7 |
| Varun Beverages | -7.2 |
However, the stocks have now bounced back from today’s low.
“We had HUL, Dabur, Marico, Havells in our portfolio among consumer names,” Parag Thakkar, Senior Fund Manager at Fort Capital told CNBC-TV18.
The GST Council has approved a two-slab structure of 5% and 18%, along with a special 40% rate for sin and luxury goods, scrapping the existing 28% and 12% brackets. This confirmed multiple CNBC-TV18 newsbreaks since PM Modi’s Independence Day speech. The new rates will take effect from September 22.
According to Nomura, the reduction of GST on many staples and essential categories from 18% to 5% is “a meaningful cut” that should ease pressure on household consumption, boost volumes, and aid formalisation in categories where the unorganised sector still has a sizeable presence.
