Fast moving consumer goods stocks (FMCG) stocks led the bull charge on Dalal Street today amid continuous buying of essential commodities during the 21 day lockdown announced to contain the cases of coronavirus. In fact, Glaxosmithkline Consumer Healthcare, HUL and Nestle India hit their all-time highs in trade today.
Glaxosmithkline Consumer share price gained 1,299 points or 13.87% to hit its all time and closing high of Rs 10,666 against previous close of Rs 9,367 on BSE.
The large cap stock opened with a gain of 4.29% at Rs 9,769 on BSE. It has gained 28.38% since the beginning of this year against Sensex's fall of 27.29%.
HUL share too hit its all time high of Rs 2,462 rising 14.36% against previous close of Rs 2,153 on BSE.
Similarly, Nestle India share touched its all-time high of Rs 17,177 compared to the previous close of Rs 15,150.The stock gained 13.38% intra day.
JP Morgan analysts have Nestle India and HUL as preferred picks, seen benefiting from higher sales of packaged foods, home care/hygiene/personal care products.
With key FMCG stocks leading the gains today, BSE FMCG index rose 849 points intra day to 10,831 compared to the previous close of 9982. During the last one week, the index has gained 3.60%. It closed 822 points higher at 10,804.Emami was the top gainer on the index closing 13.79% higher at Rs 207.50. Dabur India too closed 11.70% higher at Rs 478.40 on BSE.
While Britannia Industries share closed 10.08% higher at Rs 2,834, Marico ended 8.07% at Rs 283.75 on BSE.
Share of Colgate Palmolive surged 5.48% to Rs 1,318 and Godrej Consumer stock closed 5.26% higher at Rs 558.50.
An expected recovery in rural demand, coupled with steady urban demand, will lift revenue growth of the Rs 4-trillion FMCG sector to 10-11 per cent in fiscal 2021, close to the levels witnessed in fiscal 2019, according to Crisil Ratings.
Crude oil, which is a key input for many of consumer goods was also trading lower at $33 per barrel which strengthened sentiment on the FMCG stocks counter.