FMCG, consumer durables and cement stocks rallied on September 4, 2025 as common use items from hair oil to ice creams and TVs will cost less after the GST Council on Wednesday (September 3, 2025) approved a complete overhaul of the tangled Goods and Services Tax (GST) regime.
The GST Council approved limiting slabs to 5% and 18%, effective from September 22 — the first day of Navaratri.
Shares of Britannia Industries surged 7.18%, Dabur India climbed 6.14%, Colgate Palmolive rallied 5.21%, Emami jumped 4.62%, Hindustan Unilever edged higher by 4.34% and Nestle India went up 3.63% on the BSE.
The BSE FMCG index climbed 0.70% to 21,076.15.
Among consumer durables stocks, Blue Star surged 4.57%, Whirlpool of India climbed 4.19%, Amber Enterprises went up 3.48%, V-Guard Industries advanced 2%, and Havells India (2%).
The BSE Consumer Durables index traded 0.38% up at 62,552.58.
Among cement stocks, Orient Cement rallied 2.97%, UltraTech Cement advanced 2.92%, Shree Cement climbed 2.75% and ACC went up 2.36%.
Almost all personal-use items and aspirational goods for the middle class, like AC, washing machines, will see rate cuts as the government looks to boost domestic spending and cushion the economic blow of the U.S. tariffs.
Common use food and beverages ranging from butter and ghee to dry nuts, condensed milk, cheese, figs, dates, avocados, citrus fruits, sausages and meat, sugar boiled confectionery, jam and fruit jellies, tender coconut water, namkeen, drinking water packed in 20-litre bottles, fruit pulp or fruit juice, beverages containing milk, ice cream, pastry and biscuits, corn flakes and cereals, and sugar confectionery are likely to see a cut in tax rate to 5% from the current 12% or 18%.
Consumer goods such as tooth powder, feeding bottles, tableware, kitchenware, umbrellas, utensils, bicycles, bamboo furniture and combs will see a rate cut from 12% to 5%. The same on shampoo, talcum powder, toothpaste, toothbrushes, face powder, soap and hair oil has been cut down from 18% to 5%.
Cement will cost less with the tax rate coming down from 28% to 18%.
“Some of the key sectors that stand to benefit from this are insurance, FMCG, automobiles, agriculture equipment, cement, consumer durables, apparel, footwear, QSR, and retail,” Pranav Haridasan, MD and CEO, Axis Securities, said. — PTI
