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Informist, Friday, Sept. 19, 2025

MUMBAI – Shares of fast-moving consumer goods companies are expected to remain in a range due to lack of strong directional momentum and low volatility, analysts said. These stocks have posted significant gains in recent times, while investors have also profited. Moving forward, a breakout on either side of the 55600-57250 range is essential for any directional move, analysts said.

The recent GST rate rationalisation aims to reduce household tax burdens, boost consumption, and encourage private investment, which marks a shift from a supply side focus over the past 6–7 years to a household income and consumption-driven approach. This is expected to continue for several years, according to brokerage Systematix Shares and Stocks (India). The policy targets important industries and essentials while increasing taxes on luxury and sin goods. However, GST reductions on consumer staples are unlikely to significantly revive demand if weak income growth persists, analysts said.

Since daily-use goods are the most consumed goods, demand revival for staple companies, which produce daily-use products, will be modest and gradual. "Tax cuts may not immediately revive broader demand, while tax revenue losses will be immediate," the brokerage said.

Friday, the Nifty FMCG index ended at 56273.05 points, down 0.4%. Six out of the 15 index constituents ended the session in red. Over the week, the index fell 0.5%, performing far better than the Nifty 50 which rose 0.9%. On a weekly basis, the Nifty FMCG closed lower and snapped a four-week rising streak. The fall during this week is largely attributed to profit booking after sharp gains on the back of GST reforms.

The sales growth of FMCG companies is likely to be slower in the September quarter due to the new GST rates, effective Monday, analysts said. Emkay Global Financial Services Wednesday said in a report that FMCG players are worried about the loss of sales in September as distributors wait for inventory which entails lower GST.

To tackle the risk of a fall in sales, companies have started giving "hefty promotions", the brokerage said. Some companies are giving discounts of 5–10% to distributors, it said. Margin pressure due to promotions and slower growth is likely to impact the September quarter earnings. However, the brokerage, as well as other analysts, keep their outlook bullish on the sector's growth from the December quarter as companies are likely to recoup any loss of sales in the September quarter. 

TOP HEADLINES

* ITC to pass full benefit of GST rate cut to consumers across relevant pdts
* Heritage Foods cuts prices to pass on GST rate rationalisation benefits
* SPOTLIGHT: Sugar industry backs pause at 20% ethanol blending in petrol
* Ganesh Consumer banks on spices, foray into Bihar, northeast to drive growth
* GST Rejig: Heritage Foods to cut milk pdt prices, Godrej Jersey may follow
* Jyothy Labs launches 'Dr Wool' liquid detergent for domestic market
* Sitharaman says HUL, Dabur, others OK proactively passing on GST cut benefit
* IPO Alert: Ganesh Consumer sets price band at INR 306-INR 322 per share
* Mother Dairy to cut some pdt prices from Sept 22; Amul likely to follow suit
* Tata Consumer aims to reclaim top spot in tea sales volume from HUL
* PRESS: FMCG cos offer big discounts on products before GST rejig
* WRAP: Sugar industry eyes new ethanol avenues amid surplus sweetener view
* IPO Alert: Orkla India gets SEBI nod for OFS of up to 22.84 mln shares
* Hindustan Unilever cuts prices across product categories
* Eveready Ind settles dues with lender, to decide capital raising plan soon

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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