FMCG stocks rally as GST Council eases input tax credit rules
after close1 source ↓machine-written, see hownot a recommendation
- after the GST
- 9 Oct 2026
- increase
- 5.20%
- rise
- 4.41%
- during the session
- 2.55%
Shares of fast-moving consumer goods (FMCG) companies surged on 9 Oct 2026 after the GST Council proposed easing input tax credit (ITC) restrictions. Notably, Colgate-Palmolive India led the pack with a 5.20% increase, while ITC Ltd followed closely with a 4.41% rise. The Nifty FMCG index gained as much as 2.55% during the session, reflecting strong investor sentiment. The Council's recommendations included faster GST refunds and broader eligibility for ITC refunds on expenses like free samples and goods written off after expiry, which could significantly enhance cash flow for FMCG companies.
This move is crucial for the FMCG sector as it directly impacts the cost structure and profitability of companies. By easing ITC restrictions, the GST Council aims to improve liquidity and operational efficiency for businesses in this sector. The proposed changes could lead to increased investments and expansion plans among FMCG firms, as they will have more financial flexibility. The positive market reaction indicates that investors are optimistic about the potential for enhanced earnings in the near future.
Looking ahead, traders should monitor the implementation timeline for these proposed changes and any further announcements from the GST Council. The upcoming quarterly earnings reports from major FMCG players will also provide insights into how these regulatory changes are affecting their financial performance. The market will be particularly attentive to Colgate and ITC's responses in their earnings calls.
Source: Outlook Money, 09 Oct 2026
Not investment advice. For informational purposes only.