FMCG stocks shine; Hindustan Unilever surges 10%

MUMBAI: Led by Hindustan Unilever Ltd, FMCG stocks today surged as much as 10 per cent on account of several factors including normal rains as well as anticipation of strong quarterly earnings.

HUL scrip soared 9.86 per cent to close at Rs 684.75 on the BSE. During the day, the stock rallied 12.13 per cent to Rs 698.95 -- its 52-week high. It was the top gainer on both the key indices -- Sensex and Nifty.

Analysts said various factors including hike in prices by market leader HUL bolstered investor sentiment.

Among other gainers were: Dabur India (4.31 per cent), Colgate Palmolive (2.82 per cent), ITC (2.28 per cent) and Tata Global Beverages (2.18 per cent).

Led by the gains in these stocks, the BSE FMCG index ended the day 3.39 per cent higher at 7,400.33 and was the top gainer among the 13 sectoral indices.

"HUL shot up over 9 per cent on account of FTSE re-balancing," said Amar Ambani, head of research at India Infoline.

"From July 22, its float increases to 33 per cent from 24 per cent in FTSE's All-World and All Emerging indices. Meanwhile, the company has hiked prices of some of its best selling products in the soap category by up to 15 per cent," he added.

Milan Bavishi, Head Research, Inventure Growth and Securities said: "The company's stock is on a strong uptrend. The company has recently increased its product prices and that boosted the overall sentiment for the stock."

In the broader market, the BSE 30-stock index, Sensex, ended the day 97.50 points or 0.49 per cent up at 19,948.73, led by the FMCG stocks.