FMCG Stocks Outlook
Likely to consolidate next wk after recent gains
This story was originally published at 23:21 IST on 27 September 2024
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MUMBAI - Shares of fast moving consumer goods companies are expected to consolidate next week after having risen for three straight weeks, according to analysts. The Nifty FMCG index fell briefly this week but recovered later and closed 0.5% lower at 65845.45 points today.
The Nifty FMCG index has risen over 4% in the past 30 days, the fourth straight month of gains. As per a technical analyst at a domestic brokerage firm, the sector will likely correct in the near-term before it can rise again in anticipation of robust September quarter earnings.
Meanwhile, a report by Nirmal Bang Institutional Equities earlier this week said the start to the festive season has been tepid, particularly for consumer durables. Premium products are still driving sales, it added. According to the report, a concern for companies in the sector is the largely dried up price growth as raw-material costs are easing for most categories. The inflationary trends have sustained in select categories like coffee, tea, milk, and chocolate, which has led to steady price hikes.
If prices of crude oil and palm oil ease, it will benefit some companies in Oct-Mar, as per a report by Emkay Global earlier this week. "FMCG companies are eyeing low single-digit price growth which, along with high single-digit volume growth, would aid double-digit revenue growth in FY25," the report said.
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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 | 344.05 | (-)0.60 | 354.70 | 337.80 |
| Britannia Industries | 6268.80 | 0.90 | 6413.00 | 6108.70 |
| Colgate Palmolive India | 3764.05 | 2.80 | 3929.90 | 3586.20 |
| Dabur India | 633.00 | (-)5.20 | 642.70 | 617.10 |
| Emami | 751.65 | 0.60 | 768.80 | 731.40 |
| Godrej Consumer Products | 1388.65 | (-)4.70 | 1447.20 | 1314.30 |
| Hindustan Unilever | 2966.25 | (-)0.40 | 3060.30 | 2905.80 |
| ITC | 522.70 | 1.60 | 532.10 | 515.60 |
| Jyothy Labs | 543.25 | 1.30 | 550.90 | 531.60 |
| Marico | 692.45 | (-)2.30 | 723.50 | 672.50 |
| Nestle India | 2745.70 | 1.70 | 2798.60 | 2704.60 |
| Procter & Gamble Hygiene and Health Care | 16413.15 | (-)0.60 | 16610.10 | 16232.80 |
| Tata Consumer Products | 1201.55 | (-)1.30 | 1222.10 | 1188.70 |
| Varun Beverages | 608.55 | (-)7.00 | 633.40 | 593.60 |
| Nifty FMCG | 65845.45 | (-)0.00 | 66831.70 | 65037.60 |
| Nifty 50 | 26178.95 | 1.50 | 26328.50 | 26076.60 |
| S&P BSE Sensex | 85571.85 | 1.20 | 86178.60 | 85171.20 |
End
Reported by Anjali Singh
Edited by Deepshikha Bhardwaj
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