Nifty FMCG gained as much as 6.6 percent in intra-day deals on Monday as investors cheered corporate tax cut. The sentiment remained positive as most brokerages believe tax cut would help drive earnings for the sector.

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ITC rose as much as 9.3 percent to Rs 260.30 per share on tax cuts, no GST hike in tobacco rates and cut in GST for hotels. UBL and Colgate rose over 7 percent each.

Among other stocks, Britannia was up 6 percent, McDowell-N rose 5 percent, GSK Consumer, Emami, and Godrej Consumer were up over 3 percent each. However, Dabur and Marico fell around 1.5 percent each. In comparison, the Nifty50 was up 2 percent or 238 points, trading at 11,512.

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CLSA believes tax cut will drive FY20 EPS estimates into double digits. Top 12-month picks for the brokerage include Colgate, Britannia, ITC and Jubilant Food.

Meanwhile, credit Suisse upgraded earnings of most consumer stocks by 10-18 percent. However, it added that the impact is much lower for companies such as Marico, Dabur, Emami, GCPL and Titan.

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