GOLDEN RULES FOR TRADING

FMCG Stocks Outlook for the week – 01 to 05.08.2016 (Seen up on hope of Rajya Sabha passing GST bill)

FMCG Stocks Outlook for the week – 01 to 05.08.2016
(Seen up on hope of Rajya Sabha passing GST bill)

The shares of fast moving consumer goods companies are seen trading on a positive note on the back
of higher expectations Rajya Sabha passing the Good and Services Tax Bill. The Cabinet has already
approved changes to the Constitutional Amendment Bill to roll out Goods and Services Tax,
accommodating the Congress' demand to drop the 1% additional levy on inter-state sales. The GST bill is likely to be tabled in the Rajya Sabha next week. Nifty FMCG today closed at 22228.85, down 0.3% from the previous close. Marico Ltd is seen rising to 290 rupees in short term while Dabur India Ltd is seen rising to 325 rupees.

Godrej Consumer is currently trading near its key support level and is expected to trade higher next
week. The stock fell 2.7% from the previous close to 1,590.80 rupees on the National Stock Exchange after the company announced its Apr-Jun results during market hours. The company said
that lower sales in the home insecticides segment had hurt the topline. Godrej Consumer's
consolidated net sales rose 6.8% on year to 21.2 bln rupees.