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Informist, Friday, Jan. 2, 2026

 

MUMBAI – Shares of fast-moving consumer goods companies are expected to extend losses next week after the Nifty FMCG index logged sharp losses Friday, breaking the lower band of the 54000-57500 consolidation range. A 13% two-day decline in ITC, which carries a 33% weight in the Nifty FMCG index, led to a sharp decline in the index.

 

The Nifty FMCG closed 1.2% lower Friday and was the only sectoral index to end in the red. The decline in index stocks came despite strong gains in the overall market. The Nifty 50 hit its lifetime high of 26340 points during the session and closed 0.7% higher at a record high closing of 26328.55 points.

 

On a weekly basis, the Nifty FMCG index ended 3.7% lower while the benchmark 50-stock index rose over 1.1%. The FMCG index was dragged down by ITC shares after the government Wednesday imposed excise duty in a range of INR 2,050-INR 8,500 per thousand sticks based on the length of the cigarettes. The new duty in lieu of GST compensation cess will take effect from Feb. 1 and will increase cigarette prices. 

 

Friday, the ITC stock closed around 4% lower at INR 350.05, its lowest level since February 2023. The Nifty FMCG index closed at an over nine-month low level of 53078.80 points. The index fell week-on-week after rising for the previous two weeks and breached the psychologically crucial support of 54000 points. 

 

Market participants will watch quarterly updates from FMCG companies to gauge December-quarter earnings. Marico expects its consolidated revenue to grow in the high twenties year-on-year. It expects the operating profit growth to touch double digits in Oct-Dec.  

 

In the December quarter, Marico's international business grew in the early twenties on a constant-currency basis. The underlying volume growth of India operations remained in the high single digit, and the value-added hair oils segment grew in the twenties. "Among key inputs, copra prices have corrected 30% from the highs and are expected to exhibit a downward bias in the months ahead, followed by the flush season," the company said in its business update. It expects the gross margin to improve in the coming quarters on lower copra prices. 

 

Volume growth for FMCG companies is likely to be higher in the December quarter, aided by lower goods and services tax rates since September. However, analysts believe this is unlikely to have improved their financial performance for the quarter, as it is insufficient to boost FMCG consumption meaningfully.

 

TOP HEADLINES

 

* GST cut may have boosted Q3 sales volumes of FMCG cos but not revenue
* Brokerages downgrade ITC after govt imposes high excise duty on cigarettes
* Britannia gets GST demand order of INR 1.09 bln from Chennai tax office
* Nuvama downgrades ITC to 'hold' after govt levies excise duty on cigarettes
* Govt asks tobacco pdt makers to install CCTV, save 24 mos footage from Feb 1
* SPOTLIGHT: Excise duty hike on cigarettes leaves manufacturers in a quandary
* Govt levies excise duty on cigarettes from Feb 1, ends GST compensation cess
* FMCG sector to register 6% volume growth in Oct-Dec, Nuvama says
* Devyani Intl to get INR 90 mln as Heritage Foods buys Get-A-Way parent co
* Consumer sector recovery in Q3 seen slower than expected-Prabhudas Lilladher
* Promoter Varun Alagh buys 0.57% more stake in Honasa Consumer via block deal
* Colgate India gets income tax demand notice for INR 2.7 bln

 

Following are the resistance and support levels for key FMCG 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	236.27	(-)0.30	242.70	230.90
Britannia Industries	5984.50	(-)0.80	6077.80	5894.80
Colgate Palmolive India	2090.10	0.10	2116.50	2067.10
Dabur India	522.60	7.10	543.30	488.60
Emami	522.55	1.50	534.90	511.90
Godrej Consumer Products	1235.20	2.40	1253.90	1214.30
Hindustan Unilever	2348.00	2.70	2378.30	2306.90
ITC	350.05	(-)13.40	366.50	337.00
Jyothy Labs	284.30	0.70	291.20	273.80
Marico	757.75	1.90	772.10	744.00
Nestle India	1279.70	0.60	1306.80	1264.00
Procter & Gamble Hygiene and Health Care	12854.00	(-)0.70	13073.30	12693.30
Tata Consumer Products	1170.70	(-)0.40	1192.20	1157.60
Varun Beverages	493.80	2.30	502.50	482.60
Nifty FMCG	53078.80	(-)3.70	53970.90	52295.80
Nifty 50	26328.55	1.10	26483.90	26040.70
S&P BSE Sensex	85762.01	0.90	86290.60	84804.60

 

End

 

Reported by Simran Rede

Edited by Saji George Titus

 

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