Headline: FMCG Stocks Rally Ahead of GST Council Meet; Colgate Jumps 4% on Possible Tax Cut

Shares of FMCG majors advanced in Friday’s session as investors awaited the upcoming GST Council meeting on September 3-4, where key tax reforms are expected to be discussed. Colgate-Palmolive surged nearly 4% to an intraday high of ₹2,357.90 on the NSE following reports that toothpaste may be moved to the 5% GST slab. Other heavyweights including Britannia, ITC, Dabur, Patanjali Foods, Emami, Marico, and Hindustan Unilever gained between 2-3%. Tracking the sector-wide momentum, the Nifty FMCG index climbed 1.7%, with 12 of its 15 constituents trading in the green. The GST Council, led by Finance Minister Nirmala Sitharaman, is expected to consider a simplified two-rate structure of 5% and 18%, along with a special 40% levy on luxury cars and sin goods. Currently, GST operates under a four-tier structure of 5%, 12%, 18%, and 28%. Items in the 12% bracket — including ghee, butter, cheese, juices, instant noodles, wafers, and Chyawanprash — could shift to 5% if the proposal is cleared. Brokerages remain positive on the sector. Axis Securities noted that FMCG companies are positioned for structural growth, with rising rural penetration and supportive government tax incentives likely to fuel consumption. Motilal Oswal added that demand trends remain stable, with a gradual recovery seen in both rural and urban markets. ITC Chairman Sanjiv Puri hailed the government’s reform push, calling the potential GST rationalisation a “far-sighted move” that could boost consumption, investment, and job creation. Hashtags: #FMCG #GSTCouncil #StockMarket #Colgate #ITC #HUL #Consumption #Investing