New Delhi, Sept. 4 -- Emami, Colgate-Palmolive, and Britannia Industries were among the key consumer goods stocks that ended Thursday's trading session with strong gains of up to 4%, following the GST Council, chaired by Union Finance Minister Nirmala Sitharaman, announcing a festival bonanza on Wednesday with reduced GST rates on key FMCG items, expected to drive urban consumption potentially.

The rate cut also lifted sentiment that it would boost volumes for FMCG companies, as many of them have been relying on price hikes to sustain growth, while sharp increases in commodity costs have weighed on their margins.

Urban consumption, which contributes 50-60% of FMCG sales, remained subdued in the recent quarter, with companies relying on ...