** Indian consumer stocks .NIFTYFMCG rise 2.7%

** Government slashed rates to 5% on a wide range of everyday items including personal care products, household goods and packaged foods.

** Top gainers were Britannia BRIT.NS and Dabur DABU.NS , rising to 6% and 4%, respectively

** Morgan Stanley sees improving growth and market share shift in favor of organized players for staples

** Adds, retailers & discretionary players like D-mart AVEU.NS, Vishal Mega Mart VSSL.NS , Nykaa FSNE.NS,Domino's operator Jubilant JUBI.NS and Page PAGE.NS are better sustainable growth stories

** The panel approved a tax of 40% "sin" goods such as cigarettes which will continue to be at the current 28% till

the tax shortfall to states are repaid

** ITC ITC.NS shares rise around 3% to 423.95 rupees

** Jefferies says in case the revised lower tax gets confirmed, we expect tobacco industry to take down prices which will make them competitive against illicit competition and help gain shares

** All stocks on the FMCG index were trading positive except Varun Beverages VARB.NS as carbonated beverages would now be taxed at 40%

(Reporting by Urvi Dugar)

((UrviManoj.Dugar@thomsonreuters.com))