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Informist, Friday, Mar. 7, 2025

MUMBAI – Shares of fast-moving consumer goods companies, widely called as the 'defensive' pack, are expected to rise next week while the Indian stock market will likely be volatile. Investors are expected to shift to 'safer' sectors such as packaged consumer goods and pharmaceuticals, analysts said. The domestic equity market, which swung between gains and losses this week, is likely to be volatile next week amid hazy outlook on US tariff and trade policies. While more tariff exemptions are expected from the US following the latest relief it announced for Canada and Mexico, there are still worries about reciprocal tariffs from the White House. 

FMCG stocks have been 'oversold' recently which is likely to lead to a counter-trend rally next week, Jatin Gedia, technical research analyst at Mirae Asset Sharekhan, said. He has pegged the resistance for Nifty FMCG index at 53200 points with a support at 51000 points. On Friday, the index largely unchanged at 51891.80 points, mirroring the movement in the domestic equity market. Nifty FMCG snapped a four-week losing run after falling nearly 6% over a month.

Analysts is expecting the benefits of government's tax relief announced in the Union Budget to kick in. FMCG stocks may inch up in the June quarter, when consumer spending may rise on the back of the fiscal stimulus provided by the central government, analysts said. However, concerns about the demand and inflation may continue to weigh on the sector. Consumer demand in urban areas has been muted, but rural areas have seen a sharp pickup. Volume growth in rural areas outpaced urban regions by two times in the December quarter, data from marketing research company NielsenIQ showed. 

FMCG stocks had seen selling pressure following weak earnings over the past few quarters. In their post-earnings conference call during the December quarter, many companies said that they are focusing more on channels such as quick commerce, which has grown sharply in the past few quarters amid the overall urban slowdown. Climatic conditions in Indian will be among major triggers for the sector in the medium term. Below-average monsoon, lower agricultural volume, and weak rural demand had hit financial performance of FMCG companies last year.

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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: 

End

Reported by Simran Rede

Edited by Deepshikha Bhardwaj

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