Mumbai, July 3 (IANS) Stocks of FMCG rose to hit record high on Monday, with ITC, which is the largest contributor to the index, witnessing the highest momentum.
The S&P BSE FMCG index touched a fresh 52-week high of 10,936.47 points. Around 3 p.m., it traded at 10,794.56 points — up 3.51 per cent.
Around 3 p.m., shares of ITC traded up by almost 6 per cent at Rs 343.15 per scrip on the BSE.
According to market observers, stocks of FMCG major ITC rose after additional excise duty on cigarettes was removed under the Goods and Services Tax (GST) regime.
“With implementation of GST, FMCG stocks are rallying, especially ITC, after news of no additional excise duty on cigarettes. The shift from unorganised sector to organised sector is beneficiary to FMCG companies,” Dhruv Desai, Director and Chief Operating Officer of Tradebulls, told IANS.
Vijay Singhania, Director of Trade Smart Online, said: “The ITC already had the potential. In FMCG, and also cigarettes, the taxation has come down under GST. So, the FMCG stocks are in the positive territory.”