FMCG Stocks Outlook
Likely to consolidate next week
This story was originally published at 20:29 IST on 13 September 2024
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MUMBAI - After the recent gains, shares of fast-moving consumer goods companies are expected to consolidate in the coming week, analysts said. The US Federal Open Market Committee's interest rate decision on Sep 18 will provide direction for these stocks, and analysts expect them to gain during the volatility after the decision, owing to their defensive nature.
In the near term, the sector is expected to perform well on the back of strong fundamentals, said a research analyst covering the sector at a domestic brokerage firm. "There has been a quick run-up in the past few months in the sector, but there is still room for further upside and growth in returns," the analyst said, adding that FMCG stocks are only near their 52-week-high. While there is anticipation of a recovery in rural demand in the latter part of this financial year, this has not been completely priced in the stocks yet, the analyst said.
Sentiment towards these stocks has further improved due to good rainfall and anticipation of robust festival season demand. "As the festive season approaches, there is cautious optimism for recovery with the potential for improved rural demand due to a favourable monsoon and upcoming harvest," Pantomath Capital Advisors said in a note.
The Nifty FMCG index rose for the second consecutive week, gaining over 3% during this period. However, the sectoral index ended today's session in the red, down 0.7% at 65062.8 points.
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Following are the resistance and support levels for the sector's key stocks for next week, as per calculations based on their prices on the National Stock Exchange:
| Company | Price | Week-on-week change in % | Resistance | Support |
| Adani Wilmar | 360.40 | (-)0.60 | 376.90 | 346.20 |
| Britannia Industries | 6133.10 | 5.00 | 6204.50 | 6021.60 |
| Colgate Palmolive India | 3624.75 | (-)0.80 | 3716.20 | 3536.30 |
| Dabur India | 660.90 | 2.60 | 676.40 | 643.50 |
| Emami | 788.05 | (-)5.40 | 817.20 | 771.60 |
| Godrej Consumer Products | 1491.30 | 3.30 | 1538.40 | 1454.40 |
| Hindustan Unilever | 2932.95 | 3.30 | 2973.90 | 2898.10 |
| ITC | 513.85 | 2.40 | 523.30 | 507.30 |
| Jyothy Labs | 556.90 | 1.90 | 579.20 | 542.80 |
| Marico | 681.95 | 2.50 | 695.80 | 670.90 |
| Nestle India | 2531.40 | 1.10 | 2573.00 | 2507.50 |
| Procter & Gamble Hygiene and Health Care | 16652.85 | 3.10 | 16898.80 | 16333.10 |
| Tata Consumer Products | 1210.30 | 3.10 | 1234.10 | 1196.20 |
| Varun Beverages | 646.65 | 8.30 | 676.20 | 630.20 |
| Nifty FMCG | 65062.80 | 3.00 | 65901.20 | 64492.80 |
| Nifty 50 | 25356.50 | 2.00 | 25497.90 | 25221.80 |
| S&P BSE Sensex | 82890.94 | 2.10 | 83318.70 | 82439.30 |
End
Reported by Anjali Singh
Edited by Avishek Dutta
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