www.rupeedesk.in
Stocks of fast-moving consumer goods companies are likely to correct in the coming
sessions, when all eyes on ITC's pricing action on cigarettes. On a year-to-date basis,
FMCG stocks have been in line with the broad market, offering flat returns, so investors
are edgy and looking to exit these stocks. The government, in the Union Budget for 2013-
14 (Apr-Mar), hiked excise duty on cigarettes of over 65 mm length by 18%. Following
this, states such as Rajasthan, Bihar, Gujarat and Maharashtra hiked local taxes on
cigarettes. ITC is also expected to launch packaged dairy products over the next 14
months, which is seen as the next big opportunity for the company.
