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FMCG stocks HUL, Colgate, Dabur rise up to 7%; here is what's driving the rallyThe rally comes on the back of robust results and early signs of recovery, particularly in rural demand. Companies are also benefiting from price adjustments implemented after GST-led corrections, especially in the mass segment, which is now starting to reflect in earnings.By CNBCTV18.com April 17, 2026, 2:46:43 PM IST (Published)2 Min ReadShares of FMCG majors such as Hindustan Unilever, Colgate-Palmolive India, Dabur India, and Godrej Consumer Products gained between 3% and 7% on Friday, April 17.

The rally comes on the back of robust results and early signs of recovery, particularly in rural demand. Companies are also benefiting from price adjustments implemented after GST-led corrections, especially in the mass segment, which is now starting to reflect in earnings.

Recent earnings from VST Industries highlighted this trend, with strong performance driven by pre-buying ahead of tax hikes and price increases.

The company reported cigarette volume growth of 8.6%, while revenue surged 30%, despite factoring in additional depreciation of ₹48 crore.

Similarly, Bajaj Consumer Care Ltd delivered a strong performance, with its stock already up 80% so far in 2026.

Q4 business updates from other FMCG players also point to a steady recovery.

Godrej Consumer Products is expected to post double-digit revenue growth with high single-digit volume expansion. Marico has guided for consolidated revenue growth in the low twenties, supported by similar volume trends, while Dabur India expects high single-digit growth in its domestic business.

Brokerages believe this is the first quarter where the full benefit of earlier price corrections is visible, with the price-volume gap beginning to normalise.

Rural demand has also strengthened, providing an additional tailwind for the sector.

Looking ahead, analysts expect further calibrated price hikes of around 3-4% across FMCG categories in Q1FY27, while sectors such as paints and edible oils could see sharper increases of 6-10% or more.

Going forward, commentary on inflation trends and margin outlook will remain key monitorables, along with the sustainability of volume growth after recent price hikes.Continue ReadingNote To ReadersDisclaimer: The views and investment tips expressed by investment experts on CNBCTV18.com are their own and not that of the website or its management. CNBCTV18.com advises users to check with certified experts before taking any investment decisions.TagsColgate PalmoliveFMCG stocksHUL