The stocks of FMCG companies zoomed as much as 10% on February 01 after the Union Finance Minister Nirmala Sitharaman announced majors to boost consumption and capex. Following the announcement of no income tax up to Rs 12 lakh, the Nifty FMCG jumped 3.5% to 58,679.95.
Radico Khaitan jumped past 10% to trade at Rs 2,398.50, an intra-day high. The share price of Varun Beverages rose 8.6% to an intra-day high of Rs 582.90. The share price of Godrej Consumer Products was up more than 6% trading at Rs 1,190.45. Except for Balrampur Chini, all the stocks of the Nifty FMCG were trading higher. The FMCG majors Britannia, Hindustan Unilever, and Tata Consumer Products were the top gainers in the Nifty 50.
“The budget builds on India’s growth momentum with strong development measures, continued fiscal prudence, increased capex and reduced tax burden. An increase in disposable income enhances consumption growth and provides further wealth-creation opportunities to Indian households through the markets,” said Ashishkumar Chauhan, Managing Director & Chief Executive Officer of NSE.
“The key highlight of the budget was relief for the middle-income class through tax relief, with measures aimed to increase disposable income and boost consumption,” said Manish Chowdhury, Head of Research at StoxBox. The government’s capex allocation of Rs 11.21 lakh crores in FY26 (vis-à-vis Rs 10.18 lakh crores in FY25 RE) and efforts to align it into the most productive areas of the economy such as roads, railways, airports and infrastructure through 5-year planning is likely to have a multiplier effect and help accelerate capital formation in the economy, added Chowdhury.
Not just FMCG, other stocks that will be impacted by the higher disposable income such as consumer durables surged in Saturday’s special trading session, which was kept in the wake of the Budget 2025.
“The focus on tax reliefs and measures aimed at increasing disposable incomes, especially for the middle class, is a positive move that will strengthen purchasing power and drive demand for quality food products,” said Angshu Mallick, Managing Director & Chief Executive Officer at Adani Wilmar.
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