More Stories

Informist, Friday, Jan. 9, 2026

 

MUMBAI – Shares of fast moving consumer goods companies are likely to continue their downward trend next week after closing lower for the second week. The recent fall in FMCG stocks came after the government imposed high excise duty on cigarettes with effect from Feb. 1. Brokerages are cautious over the outlook of FMCG companies as a recovery in consumer demand during the December quarter is likely to be slower than expected.

 

The finance ministry last week said that the government had imposed excise duty on cigarettes in the range of INR 2,050-INR 8,500 per thousand sticks based on the length and type of the product. It also said that the goods and services tax compensation cess levy on tobacco and related products would be discontinued from Feb. 1. This excise duty on cigarettes will be imposed over and above the 40% goods and services tax.

 

During the December quarter, the footfall is likely to be lower than anticipated while no major boost in consumption is seen following the cuts in the goods and services tax, analysts said. Although the quarterly business updates show some signs of improvement in demand on a sequential basis, the major part of the quarter was affected due to the trade disruption due to deferred purchases ahead of GST cuts, they said.

 

Additionally, prices of most raw materials eased during the quarter, giving a potential boost for FMCG companies' financials. Palm oil prices eased in the past six months and analysts expect the prices to moderate further due to anticipated higher output from Malaysia's palm plantations, improving gross margins. 

 

The bottom line of 12 FMCG companies in the Nifty 200 index is expected to rise 6% on year but fall 2% on quarter, according to an average of estimates by 11 brokerages. These companies are likely to report a 9% on-year rise in their top line but only 2% growth on a quarterly basis.     

 

Dabur India expects its consolidated revenue to grow in the mid-single digit in the December quarter with its consolidated net profit growing faster than revenue. The top line of Marico is seen in the high twenties and the bottom line touching double digits in the reporting quarter. The underlying volume growth in its India operations is likely to be in the high single digit, similar to the growth recorded in the September quarter. 

 

Godrej Consumer Products sees its consolidated revenue, earnings before interest, tax, depreciation, and amortisation, and volumes to record near-double-digit growth in Oct-Dec. The volume growth of AWL Agri Business is expected to be in low single digit, dragged down by weakness in the castor and de-oiled cakes segment. The festival demand was relatively subdued during the quarter as trade continued to operate with lean inventory levels, the company said. 

 

Friday, the Nifty FMCG index closed 1.1% lower at 52438.15 points, underperforming the benchmark Nifty 50 index which closed 0.8% down. Going ahead, the Nifty FMCG index is expected to face immediate resistance around 53500-53800 points and find support around 51500-51000 points, Vipin Kumaar, assistant vice-president of technical and derivatives at Globe Market Capital, said. The Nifty FMCG index closed lower for the second straight week, dropping over 2%. The FMCG sectoral index broke its eight-month-long congestion range on technical charts following the excise duty hike on cigarettes last week.

 

TOP HEADLINES

 

* United Breweries launches Kingfisher Smooth beer in Rajasthan
* Godrej Consumer sees close to double-digit growth in Q3 consol revenue
* Tata Consumer Products gets demand of INR 2.7 bln from Bengaluru tax dept
* AWL Agri Q3 volumes up in low single digit on fall in castor, de-oiled cakes
* Hatsun Agro says Q3 financials data leaked by key official, probe initiated
* Patanjali Foods invests INR 350 mln in farming subsidiary via rights issue
* Marico expects Oct-Dec consolidated revenue growth in high twenties
* GST cut may have boosted Q3 sales volumes of FMCG cos but not revenue

 

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	222.98	(-)5.60	229.90	218.60
Britannia Industries	5977.50	(-)0.10	6181.20	5828.20
Colgate Palmolive India	2056.00	(-)1.60	2102.50	2018.50
Dabur India	522.40	(-)0.00	530.80	511.90
Emami	510.00	(-)2.40	526.00	498.00
Godrej Consumer Products	1229.60	(-)0.50	1257.50	1207.50
Hindustan Unilever	2372.60	1.10	2398.20	2348.20
ITC	337.15	(-)3.70	343.00	333.20
Jyothy Labs	260.60	(-)8.30	270.30	254.70
Marico	755.10	(-)0.40	770.10	744.30
Nestle India	1299.10	1.50	1320.70	1279.30
Procter & Gamble Hygiene and Health Care	12500.00	(-)2.80	12825.30	12329.30
Tata Consumer Products	1175.90	0.40	1219.80	1151.80
Varun Beverages	489.00	(-)1.00	510.20	477.40
Nifty FMCG	52438.15	(-)1.20	53369.00	51867.30
Nifty 50	25683.30	(-)2.50	26066.60	25431.40
S&P BSE Sensex	83576.24	(-)2.60	84798.90	82791.00

 

End

 

Reported by Simran Rede

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 (22) 6985-4000

Send comments to feedback@informistmedia.com

 

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