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Informist, Friday, Apr. 4, 2025

MUMBAI – Analysts are divided on the potential direction of fast-moving consumer goods stocks next week. They anticipate volatility in both upward and downward movements, seeing it as a good opportunity to buy during market downturns for building a long-term portfolio.

FMCG stocks could see positive momentum due to the advantages of a lower tax regime for individuals earning up to INR 1.20 million, effective from the 2025-26 (Apr-Mar). Analysts feel it could boost consumer spending. Nomura Global Markets Research expects urban demand to recover gradually and believes rural demand will continue to show improvement. Demand in rural areas will be supported by a good kharif crop and potentially good rabi crops. 

Consistent price hikes by FMCG companies have been supporting value growth, the brokerage said. "Given the inflation seen in the agri basket and pressure on margins, we expect companies to continue to take gradual product price hikes," the brokerage said in a report.

Dabur India's management see the company's revenue from India business declining by mid-single digits in the March quarter as sales were impacted due to a truncated winter and a slowdown in urban demand. The FMCG sector is likely to face some selling pressure next week due to a subdued business update for the March quarter, said Jatin Gedia, technical research analyst at Mirae Asset Sharekhan.

Amid price hikes, lower inflation rates prevalent in India bode well for companies' margins, Manish Jain, chief strategy officer and director at Mirae Asset Capital Markets, said in a note. With rate cuts and the government boosting consumption, they will be able to improve their top line as well, he said. 

The Nifty FMCG on Friday closed in the green for the third consecutive week, gaining 0.5% in the past four days. In contrast, the benchmark Nifty 50 lost 2.6% last week.

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* United Breweries to launch premium beer "Amstel Grande" in Uttar Pradesh
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* Dabur expects Jan-Mar operating profit margin to fall 150-175 bps on year
* ICRA reaffirms AAA rtg on Tata Consumer's long-term working capital facility
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* Swiggy gets tax order of INR 1.58 bln from income tax dept, Bengaluru
* IPO Alert: Ganesh Consumer gets SEBI's nod for INR 1.3-bln fresh issue, OFS
* Weak urban demand still a concern for consumer goods in Jan-Mar, says Nuvama
* United Spirits OKs selling residential property in Mumbai for INR 1.72 bln
* ITC to buy Aditya Birla Real Estate's pulp, paper ops for up to INR 35 bln
* Goldman Sachs buys 0.06% stake in Zomato for INR 1.20 bln via block deal

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 Subhojit Sarkar

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