Market Update: Nifty, Sensex Gain on Midday Trade, FMCG Zooms While Auto Falls
Nifty and Sensex gain following uptick in FMCG stocks. FMCG stocks including HUL, Varun Beverages and ITC were up between 1-4%.
Buoyed by gains in Fast-Moving Consumer Goods (FMCG), consumer durables and telecom stocks, market indices including Sensex and Nifty were in green during the midday trading session on September 11.
Finance Minister Nirmala Sitharaman during the 54th GST Council Meeting announced a reduction in GST rates of namkeen and savoury products to 12% from the previous rate of 18%, leading to uptick in FMCG products. Stocks including HUL, Varun Beverages and ITC were up between 1-4%.
While the Nifty rose by 19 points to 25,060 at 11.22 AM today, auto stocks largely remained weak, making the Nifty Auto index tumble by 0.7%. Stocks including M&M, Samvardhana Motherson International and Tata Motors fell by 0.3-6%. Investment firm UBS Securities reaffirmed its stance to ‘sell’ lamenting risks at Jaguar Land Rover along with its passenger vehicle segment. UBS maintained a target price of ₹825, implying a 20 percent downside.
Notably, investors are keeping a close watch on US Producer Price Index (PPI) data and initial jobless claims reports, which is set to be released by September 12.