New Delhi, Feb. 14 -- India's fast moving consumer goods (FMCG) sector majors faced a challenging quarter with the implementation of the goods and services tax (GST) rate cuts and the country's new labour codes being the key levers controlling the outcomes.

GST 2.0 was expected to boost consumption, as consumers waited for price cuts to kick in from September. The Street widely expected people to shift to premium products or from unbranded consumer goods to branded ones. While price cuts did boost sales of a few larger electronic products or cars, the wider consumer sector still awaits a trickle-down effect.

India implemented major GST reforms just ahead of the quarter, cutting rates on over 375 items to boost consumption, with 90% of t...