FMCG Stocks Outlook
Seen trading in positive territory on demand recovery
This story was originally published at 18:53 IST on 11 July 2025
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NEW DELHI – Stocks of companies in the fast-moving consumer goods sector are expected to trade in positive territory over the next 2-3 weeks. Select stocks such as Hindustan Unilever, Marico, and Nestle India are expected to outperform the sectoral Nifty FMCG index, a technical analyst at domestic brokerage firm Fisdom said. For the Nifty FMCG, 54000 points is seen as the support level next week, while 57200 points is likely to pose a resistance, as per the analyst. "The major breakout in the FMCG index is placed above 57200 level... If this breakout succeeds, then we can see a target on the higher side of around 61000-63000 (in the next 4-5 weeks)," he added.
So far, sectoral giants such as Godrej Consumer Products, Marico, and Dabur India have disclosed their business updates for the June quarter. Dabur India said the FMCG industry saw sequential recovery in demand during the quarter, with urban markets seeing an improvement in volume growth in particular. Marico said the sector exhibited consistent demand patterns during the quarter, marked by improving trends in rural markets and steady urban sentiment.
"In the earnings season, we're expecting them (FMCG companies) to at least post a stronger guidance, if not a stronger set of numbers immediately. Summer businesses could be under pressure because of the early onset of the monsoon," Nirav Karkera, who heads research at Fisdom, said. He sees positive levers that could aid revival in this sector, including lower food inflation, interest rate cuts, and stronger demand in rural markets on the back of a healthy monsoon.
Dabur India has said its consolidated revenue for the June quarter is seen growing only in the low single digit owing to a decline in its beverages portfolio. The company expects its consolidated operating profit growth for the quarter to marginally lag its revenue growth. Godrej Consumer, on the other hand, expects double-digit revenue growth on the back of high single-digit underlying volume growth on a consolidated level. Marico said its consolidated revenue growth for the quarter stood in the low twenties on a year-on-year basis.
On Jul. 3, Marico had said copra prices continued to witness sequential inflation in the June quarter, which was heightened by unseasonal rainfall patterns. However, vegetable oil prices eased after the reduction in import duty, while crude oil derivatives were range-bound, as per the company. Therefore, the company's gross margin is expected to see incremental pressure, which is likely to start easing from the second half of the financial year 2025-26 (Apr-Mar), the company said.
Systematix Institutional Research Friday said companies in the alco-beverage category are poised to report healthy performance for the June quarter, with double-digit volume growth expected in the Prestige & Above category, supported by product innovations and new launches. Meanwhile, the regular segment is likely to post positive volume growth on a low base, it added. Companies in this segment are expected to benefit from margin improvement, driven by a favourable product mix and moderation in input cost inflation, Systematix said.
On the next round of price hikes by FMCG companies, Karkera said, "With the comfort coming from input prices softening, they may not be in a rush to hike prices." Further, rate cuts are expected to help the balance sheets of the companies and release some pressure off margins.
Friday, the Nifty FMCG index closed at 55910.25 points, up 0.5%. The index has outperformed the benchmark Nifty 50, rising 2.2% through the week. The Nifty 50 fell 1.2%, closing the week at 25149.85 points.
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Following are the resistance and support levels for the stocks for next week as per calculations based on their prices on the National Stock Exchange:
| Company | Price | Week-on-week change in % | Resistance | Support |
| AWL Agri Business | 269.90 | 5.40 | 276.10 | 264.40 |
| Britannia Industries | 5,758.50 | (-)0.20 | 5,980.80 | 5,605.80 |
| Colgate Palmolive (India) | 2,376.10 | (-)2.90 | 2,458.60 | 2,328.80 |
| Dabur India | 530.85 | 7.20 | 545.80 | 511.20 |
| Emami | 587.00 | 4.40 | 612.20 | 569.90 |
| Godrej Consumer Products | 1,285.00 | 7.70 | 1,316.30 | 1,264.30 |
| Hindustan Unilever | 2,519.60 | 7.70 | 2,572.50 | 2,434.50 |
| ITC | 416.80 | 1.00 | 419.30 | 414.20 |
| Jyothy Labs | 355.65 | 4.00 | 365.10 | 347.00 |
| Marico | 725.65 | (-)0.40 | 740.20 | 715.30 |
| Nestle India | 2,403.50 | 0.50 | 2,441.40 | 2,378.20 |
| Procter & Gamble Hygiene and Health Care | 13,194.00 | (-)1.20 | 13,347.30 | 13,025.30 |
| Tata Consumer Products | 1,076.80 | (-)1.20 | 1,112.00 | 1,056.40 |
| Varun Beverages | 452.25 | (-)0.90 | 465.20 | 444.50 |
| Nifty FMCG | 55910.25 | 2.20 | 56575.00 | 55460.00 |
| Nifty 50 | 25149.85 | (-)1.20 | 25393.90 | 25007.00 |
| S&P BSE Sensex | 82500.47 | (-)1.10 | 83259.60 | 82062.70 |
End
Reported by Shakshi Jain
Edited by Nishant Maher
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