In New Delhi, stocks in the FMCG, consumer durables, and cement sectors experienced a surge as common goods, including hair oil, ice creams, and TVs, will become less expensive following a comprehensive reform of the Goods and Services Tax (GST) system approved by the GST Council. Effective from September 22, coinciding with the start of Navaratri, the Council set new tax slabs at 5 percent and 18 percent. On the BSE, shares of Britannia Industries rose by 7.18 percent, Dabur India increased by 6.14 percent, Colgate Palmolive jumped 5.21 percent, Emami climbed 4.62 percent, Hindustan Unilever gained 4.34 percent, and Nestle India saw a rise of 3.63 percent. The BSE FMCG index increased by 0.70 percent, reaching 21,076.15.
In the consumer durables sector, Blue Star surged by 4.57 percent, Whirlpool of India rose by 4.19 percent, Amber Enterprises climbed by 3.48 percent, V-Guard Industries advanced by 2 percent, and Havells India also gained 2 percent, with the BSE Consumer Durables index up by 0.38 percent at 62,552.58. Cement stocks also saw gains, with Orient Cement rising by 2.97 percent, UltraTech Cement up by 2.92 percent, Shree Cement climbing 2.75 percent, and ACC increasing by 2.36 percent. The government aims to encourage domestic spending and mitigate the economic impact of US tariffs by reducing tax rates on nearly all personal-use items and aspirational goods for middle-class consumers.
This includes significant reductions in tax rates from 12 percent or 18 percent to 5 percent on various food and beverage items, as well as consumer goods like tooth powder, feeding bottles, and kitchenware, with specific items like shampoo and soap seeing cuts from 18 percent to 5 percent.
