FMCG Stocks Outlook
Seen consolidating next week; no sign of recovery
This story was originally published at 22:19 IST on 21 February 2025
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MUMBAI – Shares of fast-moving consumer goods companies are seen lower next week with no signs of recovery in the near-term. While some analysts hope demand will improve once inflation in India eases, others still anticipate a further decline in the shares of FMCG companies.
"The sector has been underperforming since Budget and I think it will see some more consolidation next week," Ajit Mishra, senior vice-president of technical research at Religare Broking, said. The Nifty FMCG index has fallen for 15 consecutive sessions, its longest losing streak on record, and on Friday it closed 0.5% lower at 52098.15 points. The index is expected to fall to 48800 points and then it may stabalize and inch upwards, Rishubh Vasa, research analyst at IndSec Securities & Finance, said.
Even though the index rose 3% on Feb. 1 after the government announced income tax cuts to fuel consumption, it has fallen over 10% so far after the Budget. The impact of interest rate cut by the Reserve Bank of India will be seen after Apr. 1 and there will be an increase in consumer spending, Vasa said. He expects this to help boost the FMCG sector. However, several large FMCG companies are expected to take a hit on volume growth as price hikes imposed by them have hurt demand for products.
For the December quarter, the net profit of FMCG companies declined 3% on year, in line with expectations. Meanwhile, the net sales of the 12 FMCG companies rose nearly 9% on year during the reporting quarter, slightly missing analysts' expectations of over 10% growth.
Mishra expects the Nifty FMCG to find a critical support at 51300 points, which was last seen in 2023. After that the index had shown some recovery. If the index breaks this support then it is likely to have an upward trajectory, he said. Mishra pegs resistance for the FMCG index at 53000-54200 points.
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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 | 260.35 | 10.10 | 267.60 | 253.90 |
| Britannia Industries | 4831.90 | (-)2.20 | 4888.50 | 4755.20 |
| Colgate Palmolive India | 2458.75 | (-)1.00 | 2514.90 | 2412.90 |
| Dabur India | 508.65 | (-)2.20 | 516.00 | 499.80 |
| Emami | 556.65 | 6.10 | 570.80 | 538.80 |
| Godrej Consumer Products | 1052.20 | (-)0.60 | 1092.40 | 1027.30 |
| Hindustan Unilever | 2241.65 | (-)3.30 | 2267.70 | 2213.40 |
| ITC | 400.90 | (-)2.30 | 405.20 | 397.10 |
| Jyothy Labs | 343.50 | (-)4.30 | 356.00 | 334.80 |
| Marico | 624.80 | (-)1.40 | 657.70 | 598.80 |
| Nestle India | 2214.95 | 0.90 | 2236.30 | 2178.70 |
| Procter & Gamble Hygiene and Health Care | 13717.55 | (-)1.00 | 14099.20 | 13464.20 |
| Tata Consumer Products | 1004.00 | (-)1.80 | 1025.20 | 980.80 |
| Varun Beverages | 477.65 | (-)2.20 | 492.90 | 453.50 |
| Nifty FMCG | 52098.15 | (-)2.00 | 52695.20 | 51594.70 |
| Nifty 50 | 22795.90 | (-)0.60 | 23013.10 | 22611.70 |
| S&P BSE Sensex | 75311.06 | (-)0.80 | 76027.00 | 74754.40 |
End
Reported by Simran Rede
Edited by Deepshikha Bhardwaj
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