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Informist, Friday, May 16, 2025

MUMBAI – A potential boost in consumption in urban areas is expected to spur shares of fast-moving consumer goods companies in the coming week, as a softer food inflation has raised expectations of more interest rate cuts, analysts said. The Reserve Bank of India is widely expected to reduce its key repo rate by 75-100 basis points by the end of 2025-26 (Apr-Mar). Revision in income tax slabs in the Union Budget for 2025-26 (Apr-Mar) is also likely to spur urban demand.

The earnings of many FMCG companies have been hit hard by tepid consumer demand, particularly in urban markets, weighed down by persistent food inflation, interest rates, and stagnating real wage growth. However, these companies are optimistic about an improvement in urban demand in coming quarters.

Movement in shares of consumer goods companies are expected to dictated by their earnings next week. Colgate Palmolive will announce its March quarter earnings Wednesday. The company's net profit may decline 7% on year to INR 3.53 billion, according to the average of estimates by 14 brokerages. The fall may be due to higher consumer promotions in general trade, according to analysts. Its revenue is seen up over 1% on year at INR 15.08 billion. United Spirits will report its March quarter earnings on Tuesday, with its bottom line expected to decline nearly 17% on year to INR 3.19 billion and its top line likely to rise over 10% to INR 29.33 billion.

The Nifty FMCG index is expected to rise further next week. Its resistance is pegged at 58500 points and immediate support at 55800 points, Vipin Kumar, senior derivatives and technical analyst at Globe Capital Market, said. On Friday, the index closed 0.7% higher at 57061.80 points, with Tata Consumer Products and Dabur India being the top gainers, ending higher by over 1.6% each.

TOP HEADLINES

* Analyst Concall: Pantanjali Foods sees 15% personal care ops growth as guided
* Earnings Review: Patanjali Foods clocks highest YoY growth in PAT in 3 qtrs
* Bikaji Foods Jan-Mar consol PAT falls 61.7% YoY; sales down 0.1%
* Godfrey Phillips Jan-Mar net proft rises 35% on year to INR 2.41 billion
* Crompton Greaves Jan-Mar PAT rises 5.9% on year to INR 1.71 billion
* HUL gets no objection letter from BSE, NSE for Kwality Wall's spin-off
* Jyothy Labs Jan-Mar consol PAT falls 2.4% YoY to INR 763 million
* Analyst Concall: Britannia says need for price hikes to slow down in FY26
* Sula Vineyards cancels analyst concall, citing India-Pakistan conflict
* KPR Mill Jan-Mar consol PAT falls 4.2% on year to INR 2.05 billion

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 Ashish Shirke

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