Indian share markets continued to trade in green despite weak economic growth data for the June quarter. Realty stocks, auto stocks and metal stocks witnessed majority of the buying activity. Consumer durables stocks and software stocks were trading in red.
The BSE Sensex is trading higher by 133 points and the NSE Nifty is trading higher by 43 points. Meanwhile, the BSE Mid Cap index is trading up by 0.9% & the BSE Small Cap index is up by 1%. The rupee is trading at 64.02 to the US$.
As per an article in The Economic Times, Nestle India expects its registered sales growth to be impacted till June next year because GST. However, sales volume is not expected to be impacted as much.
The company has stated that the excise duty has got subsumed in the GST rate post July 1 and will be netted from the sales, which will be higher than the pre-GST regime. In the pre-GST regime, sales were registered gross of excise duty and excise duty used to be a separate cost line and the VAT which was paid on sales was netted from sales.
The range of the GST rates for each of the company’s categories are between 5% and 28%.
The company also recently stated that it is likely to foray new categories like water and pet care in the country. The company said about half of its growth now comes from its non-noodles portfolio, and that it will focus now on driving double digit volume growth, sustaining profitability, and fortified products across categories.
Nestle India share price is presently trading down by 1% on the BSE.
FMCG stocks are trading on a firm note with Kokuyo Camlin share price and Lakshmi Overseas Industries share priceleading the gains.
Meanwhile, Patanjali seems to have disrupted the FMCG pecking order. The share of Indian households that use the Patanjali brand is estimated at 38%. That’s huge for a company barely a decade and a half old. Especially if you consider Patanjali’s competition.
