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Nestle India, HUL, Dabur, Colgate Palmolive stocks close higher as demand seen rising post I-T rate cuts

While Nestle India share price rose 6.98% to hit its all-time high of 16,502, Britannia Industries share price climbed up to 4.84% to Rs 3,248 on BSE

twitter-logoBusinessToday.In | February 3, 2020 | Updated 18:36 IST
Nestle India share price hits all-time high; HUL, Dabur, Colgate Palmolive close higher after FM Nirmala Sitharaman cuts income tax rates
Income tax rates will be significantly reduced for those who forego deductions and exemptions, Sitharaman said in her Budget speech on February 1

FMCG shares such as Britannia, Nestle India, Dabur, Colgate Palmolive and Hindustan Unilever (HUL) ended higher on Monday after FM Nirmala Sitharaman in her second consecutive Union Budget introduced tax cuts for individual taxpayers, a move aimed at providing more disposable income for consumers.

While Nestle India share price rose 6.98% to hit its all-time high of 16,502, Britannia Industries share price climbed up to 4.84% to Rs 3,248 on BSE.

Dabur India stock too touched an intra day high of Rs 500.5, rising 5.1% on BSE. HUL stock gained up to 5.85% to Rs 2,195 compared to the previous close of Rs 2,073 on BSE. BSE FMCG consumer index gained 81 points or 0.72% at 11,461  in trade today.

Income Tax calculation: You can save up to Rs 31,200 under new tax slabs

Income tax rates will be significantly reduced for those who forego deductions and exemptions, Sitharaman said in her Budget speech on February 1.

While the government has announced changes in the tax slabs by raising income tax slabs, those availing these new slabs will not be eligible for rebates and exemptions.

For those earning income between Rs 7.5 lakh and Rs 10 lakh per annum, income tax rate has been reduced to 15 per cent from the current 20 per cent. For income between Rs 10 lakh to Rs 12.5 lakh per annum, income tax has been reduced to 20 per cent from the current 30 per cent. For those earning between 12.5 lakh to Rs 15 lakh, income tax of 25 per cent will be imposed.

A person earning Rs 15 lakh per annum and not availing any deductions will pay Rs 1.95 lakh tax in place of Rs 2.73 lakh now, said Sitharaman. The government will forego Rs 40,000 crore per annum revenue from new income tax rates for individuals, she added.

 The tax cuts are expected to make demand for FMCG products stronger in a slowing economy which led to rise  in key sectoral stocks in trade today.

FMCG stocks managed to close higher with minor losses.

Earn less than Rs 10 lakh per annum? These are your new income tax rates

While HUL share price closed 5.06% or 104 points higher at  Rs 2,178, Dabur stock ended 2.47% or 12 points higher at Rs 497.45 on BSE.

Nestle India, famous for its Maggi noodles, climbed 875 points or 5.68% to close at Rs 16,301.  Colgate Palmolive share price ended 3.37% or 44 points higher at Rs 1350 on BSE.

Benchmark Sensex managed to recover minor losses from Saturday's  close and  ended 136 points higher at 39,872.  Nifty gained 46 points to 11,707. On Saturday, BSE 30-share S&P Sensex ended 987points lower at 39,735 and NSE 50-share index Nifty50 ended 318 points lower at 11,643.

By Aseem Thapliyal

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