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Informist, Friday, Dec. 5, 2025

MUMBAI – Shares of fast-moving consumer goods companies are expected to continue to move in a narrow range next week as the Nifty FMCG failed to break the range-bound trend. The index has been mostly flat over the past two years, and analysts expect this trend to continue, even if there is some improvement in select stocks.

The Reserve Bank of India Friday cut the repo rate by 25 basis points to 5.25% and retained its 'neutral' stance. Even though the stimuli for consumption growth are yet to play out, analysts believe they are not enough to boost consumption and demand. They expect some revival only after the December quarter.

The December quarter earnings are likely to show some impact of trade destocking and trade disruption following the goods and services tax rate cut, analysts said. "For that reason, I do not think there will be a big boost that we will see as far as the consumer sector top-line growth or demand growth is concerned, at least in the third quarter. So, growth, I think in the second quarter, 200 to 400 basis points worth of growth was impacted," a sector analyst at Systematix Shares and Stocks (India) said.

After registering muted volume performance since the past four years, the consumer goods industry in the country is expected to see a rebound in terms of volume growth in calendar year 2026, owing to multiple macroeconomic factors pushing the industry's growth to high-single-digit, brokerage Nomura said in a report Tuesday.

While the rural economy is expected to reap the benefits of a strong monsoon, which will improve affordability and drive faster volume growth, demand from urban consumers is also expected to see a cyclical recovery, leading to overall volumes making a comeback to mid-single-digit or higher percentage growth, after four years of growth in low single digits.

Most FMCG stocks have been trading at higher valuations, ranging from 40 to 55 times one-year forward price-to-earnings, the analyst said. "And I do not think there has been a significant correction in valuations and undervaluation for any of the major companies," he said. 

The Nifty FMCG is expected to find support at 54700-54800 and face resistance at 55600-55700. As long as the index holds this level, the structural uptrend remains intact, Bhavya Shah, technical research analyst at StoxBox, said. A sustained close above 55600-55700 points is necessary to trigger a fresh momentum towards the 56200 levels, he said.

TOP HEADLINES

* Lok Sabha passes central excise amendment bill to retire cess on tobacco pdt
* Govt makes it mandatory for all pan masala packs to show retail prices
* NFO: Union MF launches Union Consumption Fund; offer closes Dec 15
* Bikaji Foods subscribes to additional common stock of US arm for $250,000
* Nomura sees high single-digit volume growth for FMCG sector in 2026
* Tata Consumer slows Starbucks expansion, to open only 40-50 stores in FY26
* Vandana Suri to succeed Srinandan Sundaram as ED of HUL home care business
* Bajaj Finance to sell up to 2% stake in Bajaj Housing Finance

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:

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Reported by Simran Rede

Edited by

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