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Informist, Friday, Oct. 24, 2025

MUMBAI – Given the rangebound movement from the last six months, the index for stocks of fast-moving consumer goods companies, Nifty FMCG, is expected to continue this momentum. The index has been moving in a range of 54000–57500 points in the past six months due to a lack of major triggers. However, the recent cuts in the goods and services tax and key interest rates are likely to aid some rise in stocks going forward, analysts said.

On the fundamental side, the valuation of FMCG stocks is said to be on a premium side. Lower GST rates have slightly impacted the September quarter earnings, most FMCG companies said in their business updates. However, they are confident that lower tax will benefit the December quarter performance. 

The GST cuts have impacted margins of FMCG companies as their sales channels resorted to destocking, which led to dampened volume uptake. The transitory impact of the government's decision to cut taxes on packaged food and personal care products disrupted the company's trade channels and inventory pipeline in the September quarter, leading to flat-on-year underlying volume growth. However, companies do not expect any further impact on margins going forward.  

Volume-side concerns for FMCG firms are likely to persist and demand is yet to pick up momentum despite the government's push for consumption, an analyst at a domestic brokerage said. Higher spending on advertising and promotions and inflationary pressure from raw materials is expected to continue to have an impact on margins, he said.

Technical outlook for the FMCG stocks remains positive as the Nifty FMCG "index is above its 20-week and 50-week EMAs (exponential moving average), placed at 55695 and 55837, respectively, indicating a positive bias in the medium term," analysts said. The immediate support for the Nifty FMCG index is seen at 55270–54100 points, while resistance is seen at 57100–57400 points. A decisive weekly close beyond either end of the range of 54100–57400 points will determine the medium-term trend and set the tone for the next directional move, analysts said. 

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* Earnings Review: Colgate logs worst PAT fall since Q3 FY17 as GST cut bites
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* HUL may hike prices in low single-digit across 60% of product portfolio
* HUL to be 'obsessed' with volume-led revenue growth in future, says MD Nair
* Earnings Outlook: Volume fall to drag down Colgate-Palmolive Q2 revenue, PAT
* Earnings Review: HUL Q2 volume growth flat, misses Street view on revenue
* Heineken's Jul-Sept India organic net revenue rises in mid single digit
* Earnings Outlook: GST cut-led destocking to keep HUL earnings muted in Q2

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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