FMCG Stocks Surge on Budget Allocation Boost for Agriculture and Rural Development

FMCG stocks surged on Tuesday after the Indian government announced a significant budget allocation for agriculture, rural development, employment, and skilling. ITC led the charge with a 5.52% rise, followed by gains in several other FMCG companies. The sector outperformed a bearish broader market.

FMCG stocks were the highlight of the trading session on Tuesday, with ITC leading the charge, surging over 5%. This came in response to budgetary allocations aimed at bolstering agriculture, rural development, and employment opportunities.

Shares of ITC rose by 5.52%, followed by Heritage Foods at 5%, Avanti Feeds at 4.60%, Tata Consumer Products at 4.49%, and Vadilal Industries at 4.09% on the BSE. LT Foods increased by 3.73%, Tasty Bite's stock went up by 3.29%, Godrej Consumer Products rose by 3.25%, Dabur climbed by 2.75%, Kaveri Seed Company increased by 2.21%, and Hindustan Unilever gained 1.17%.

Despite a broader bearish market, where the BSE Sensex ended 73.04 points lower at 80,429.04, the BSE FMCG index jumped by 2.48%. Finance Minister Nirmala Sitharaman announced a substantial Rs 1.52 lakh crore allocation for agriculture and allied sectors in 2024-25. The budget also includes Rs 2.66 lakh crore for rural development and Rs 2 lakh crore for employment schemes targeting 4.1 crore youth.

(With inputs from agencies.)