More Stories

Informist, Friday, Jul. 18, 2025

NEW DELHI – Stocks of fast moving consumer goods companies are likely to show selective movement in the next few weeks as the earnings season picks up pace. Based on a combination of higher-than-expected results from companies, positive commentary from company management, and comfortable valuations, gains are likely for select stocks such as Dabur India and Hindustan Unilever, according to analysts. 

Sugandha Sachdeva, founder of SS WealthStreet, sees the Nifty FMCG index moving in a range of 56000-odd levels to 57400-level next week, while holding a positive bias. At least four of the Nifty FMCG index constituents are scheduled to announce their June quarter earnings in the coming week. Colgate Palmolive (India) and United Breweries are set to declare their results Tuesday, followed by Tata Consumer Products on Wednesday and Nestle India on Thursday.

According to a report by Elara Securities, demand for FMCG products remained steady in the June quarter, although weak urban consumption and an early monsoon hurt summer-centric categories such as beverages and cooling products. Further, higher input prices are likely to weigh on margins with most companies expected to report a contraction in profitability, the brokerage said in a report earlier this month. 

Analysts are hopeful that the tide may be turning for the FMCG sector, which has underperformed in recent years and includes several stocks with unattractive valuations. This is due to tailwinds such as expectations of a healthy monsoon this year, government focus shifting from capital expenditure to consumption, and tax reliefs announced in the Union Budget 2025-26 (Apr-Mar), which is expected to leave more money into the hands of consumers for discretionary spends. 

"FMCG sales, which have been in a slow lane, have seen a revival in 1Q26 (Apr-Jun) as the impact of volume stabilisation and price hikes of last year enable growth," Prabhudas Lilladher Institutional Equities said in its "India Strategy" report released earlier this week. The brokerage is of the view that the upcoming festival season and spatial distribution of monsoon will be key determinants for an overall broad-based demand revival in the country. On benefits from tax relief announced in the Union Budget, the brokerage estimates tax savings could translate into INR 3.3 trillion in additional consumption over 2025-26 (Apr-Mar), particularly benefiting discretionary segments such as travel, home upgrades, and lifestyle products. It expects the full consumption impact of the tax cuts to materialise from August onwards. 

FMCG companies across India have in recent times grappled with volatile raw material prices, including that of palm oil and copra, resulting in minimal price cuts. However, with several growth levers looking up, such as demand, interest rate cuts, and subsiding inflation, companies may not be in a rush to hike prices hereon, analysts said. Further, a potential pricing trigger could come from a goods and services tax rate revision expected from the GST Council meeting in August.  

Friday, the Nifty FMCG Index closed 0.6% lower at 56506.90 points, snapping a five-session rally of gains. The index has fallen over 1% through the week, higher than the Nifty 50, which has fallen 0.7%. 

TOP HEADLINES

* CNBC-TV18: HUL CFO Tiwari likely to step down, move to global role* Patanjali Foods board approves 2-for-1 bonus share issue
* AWL Agri Business Apr-Jun consol PAT falls 25% on year to INR 2.36 billion
* Patanjali Foods board to mull issue of bonus shares on Thu
* SC says United Spirits liable for entry tax payment in Madhya Pradesh
* HUL clarifies Ritesh Tiwari continues to be co's CFO, executive director
* CNBC-TV18: HUL CFO Tiwari likely to step down, move to global role

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 Shakshi Jain

Edited by Deepshikha Bhardwaj

For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.

Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd by NSE Data & Analytics Ltd, a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt Ltd.

Informist Media Tel +91 (11) 4220-1000

Send comments to feedback@informistmedia.com

© Informist Media Pvt. Ltd. 2025. All rights reserved.