FMCG Stocks Outlook
Seen less volatile; buying likely on lucrative valuation
This story was originally published at 21:31 IST on 17 January 2025
Register to read our real-time news.Informist, Friday, Jan. 17, 2024
MUMBAI – Despite ending the week on a positive note, investors are likely to stay cautious on the shares fast-moving consumer goods companies. The FMCG stocks are likely to be less volatile next week than it has been of late ahead of their December quarter earnings disclosure and the slowdown in urban consumption. But the stocks may see a pickup in buying as the valuations of FMCG companies are attractive, analysts said.
The softer-than-expected inflation print has also pushed up the market sentiment. Analysts believe higher palm oil prices have dented the demand for skincare products, while the demand for oral and healthcare products has increased. The companies in the FMCG sector are expected to post flattish-to-muted earnings with lower volume growth.
The Nifty FMCG index rose over 1% Friday after falling for five consecutive sessions, but was down over 2% for the second-straight week. All the constituents in the index rose Friday except Varun Beverages, which fell 3.2%. Shares of Godrej Consumer Products and Hindustan Unilever rose 3.3% and 0.4%, respectively, ahead of their quarterly earnings scheduled for release next week.
Sentiment towards these stocks has further improved after the companies started to launch product price-wise packs specifically for quick-commerce. Recently, the general trade entities accused quick-commerce platforms of over-powering their business with the help of predatory pricing and other unfair practices. Following this, most FMCG companies such as Parle Products Pvt. Ltd., Reliance Retail Ltd., D-Mart operator Avenue Supermarts Ltd., ITC, and Hindustan Unilever have launched separate packs for quick-commerce platforms with slightly higher prices. On other hand, comparatively cheaper packs will be available at the kirana shops.
TOP HEADLINES
* Earnings Outlook: Against the tide, United Spirits to post volume-led growth
* PRESS: FMCG cos launch differently priced packs for quick-commerce
* By entering quick-commerce, Spencer's Retail aims to turn profitable by FY27
* Earnings Outlook: Zomato's Oct-Dec earnings growth seen decelerating
* Adani Enterprises' arm sells 13.51% stake in Adani Wilmar via OFS
* Earnings Outlook: Cigarette sales to aid ITC revenues; PAT growth seen muted
* Hina Nagarajan resigns as MD, CEO of United Spirits effective Mar 31
* Emami plans dual-brand play, set to scale up men's grooming portfolio
* Adani Commodities to sell 15.01%, not 13.5%, stake in Adani Wilmar via OFS
* HUL incorporates subsidiary for ice cream business ahead of demerger
* Dabur moves HC against Patanjali Ayurved's Dant Kanti Red toothpaste
* Dabur buys 51% preference share capital of Sesa Care for INR 125.90 mln
* Delhi HC summons Dabur India on plea by Capital Foods in trademark suit
Following are the resistance and support levels for the stocks for next week as per calculations by Informist based on their prices on the National Stock Exchange:
| Company | Price | Week-on-week change in % | Resistance | Support |
| Adani Wilmar | 268.05 | (-)7.90 | 274.80 | 260.20 |
| Britannia Industries | 4854.40 | (-)1.70 | 4972.30 | 4756.70 |
| Colgate Palmolive India | 2683.65 | (-)5.20 | 2749.90 | 2603.20 |
| Dabur India | 526.05 | 1.60 | 540.50 | 508.80 |
| Emami | 564.85 | (-)4.20 | 576.90 | 555.00 |
| Godrej Consumer Products | 1187.75 | 1.20 | 1226.50 | 1129.60 |
| Hindustan Unilever | 2354.00 | (-)3.60 | 2395.10 | 2322.50 |
| ITC | 440.20 | (-)1.10 | 447.50 | 428.90 |
| Jyothy Labs | 397.70 | (-)0.20 | 408.40 | 380.80 |
| Marico | 664.40 | (-)1.40 | 681.70 | 636.70 |
| Nestle India | 2217.20 | (-)1.40 | 2259.20 | 2151.60 |
| Procter & Gamble Hygiene and Health Care | 14753.75 | (-)0.10 | 15035.50 | 14437.80 |
| Tata Consumer Products | 954.45 | (-)1.90 | 973.70 | 925.70 |
| Varun Beverages | 556.35 | (-)6.70 | 592.40 | 527.50 |
| Nifty FMCG | 55800.85 | (-)2.30 | 56512.10 | 54787.00 |
| Nifty 50 | 23203.20 | (-)1.00 | 23390.30 | 23006.80 |
| S&P BSE Sensex | 76619.33 | (-)1.00 | 77456.50 | 75844.70 |
End
Reported by Simran Rede
Edited by Akul Nishant Akhoury
For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.
Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd by NSE Data & Analytics Ltd, a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt Ltd.
Informist Media Tel +91 (22) 6985-4000
Send comments to feedback@informistmedia.com
© Informist Media Pvt. Ltd. 2024. All rights reserved.
To read more please subscribe
Share this Story:
