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Fast-moving consumer goods (FMCG) stocks slipped on Friday as investors booked profits after a strong five-day rally
FMCG Stocks Fall (Unsplash/Representative Image)
Fast-moving consumer goods (FMCG) stocks slipped on Friday as investors booked profits after a strong five-day rally, with shares falling up to 3 per cent.
Varun Beverages was the top drag, tumbling nearly 4 per cent. ITC dropped 2.5 per cent, while Emami and Colgate Palmolive (India) fell 1.79 per cent and 1.52 per cent, respectively. Other laggards included Patanjali Foods, Dabur India, Hindustan Unilever, Godrej Consumer Products, and Nestle India, all sliding up to 1.5 per cent.
The Nifty FMCG index lost around 2 per cent, making it one of the top sectoral losers of the day. This comes after the index had risen nearly 3 per cent over the past five sessions, boosted by the GST Council’s decision to rationalise rates.
The Council approved limiting slabs to 5 per cent and 18 per cent, effective September 22, lowering prices of commonly used products such as food items, personal care goods, ice creams, and consumer durables.
Following the sharp rally, profit-taking set in, pausing the sector’s momentum. The sell-off mirrored broader market weakness, with benchmark indices giving up early gains.
The Sensex, which had climbed 318.55 points to 81,036.56 in early trade on GST rate cut optimism and firm global cues, retreated to 80,353. The Nifty slipped below 24,650, closing at 24,633 after briefly crossing the 24,700 mark.
Analysts’ Outlook
Emami, Colgate-Palmolive, and Britannia Industries were among the top gainers in Thursday’s session, rising up to 4% after the GST Council, chaired by Union Finance Minister Nirmala Sitharaman, announced reduced GST rates on key FMCG items. The cuts, seen as a festival bonanza, are expected to lift urban consumption.
ITC Chairman and MD Sanjiv Puri called the reforms “transformative, bold and comprehensive,” noting that rationalisation across sectors will improve affordability, spur consumption, attract investments, drive economic growth, and create jobs.
Emami Vice-Chairman and MD Harsha Varshan Agarwal described the GST cut as a “game-changing move” that could significantly boost rural demand. He added that a combination of GST cuts, income tax relief, lower repo rates, and a good monsoon would create a strong ecosystem for growth.
“For Emami, the priority is to pass on GST benefits to consumers at the earliest so that greater value is created for them,” Agarwal said, highlighting its potential to drive demand across segments.
Aasif Malbari, CFO of Godrej Consumer Products (GCPL), also welcomed the tax reduction, calling it a “positive trigger” for demand creation.
Aparna Deb is a Subeditor and writes for the business vertical of News18.com. She has a nose for news that matters. She is inquisitive and curious about things. Among other things, financial markets, economy, a…Read More
Aparna Deb is a Subeditor and writes for the business vertical of News18.com. She has a nose for news that matters. She is inquisitive and curious about things. Among other things, financial markets, economy, a… Read More
September 05, 2025, 14:12 IST
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