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Informist, Friday, Feb. 20, 2026

 

MUMBAI – The Nifty FMCG index is expected to clock some gains in the coming week as December quarter earnings of fast-moving consumer goods companies showed some volume-led recovery in rural and urban markets. Rural markets continued to outperform their urban counterparts for the past few quarters, but the gap has narrowed now, according to analysts.

 

The growth in rural areas is still around 300 basis points ahead of that in urban areas, indicating steady growth in rural areas with a gradual recovery in urban. The demand was seen improving slightly after the reductions in goods and services tax. Although the GST cuts failed to lure consumers and push stocks up by a wide margin, analysts believe the consumer sentiment has improved.

 

"Most Foods segment...have benefited from GST rate cut," Anand Rathi Share and Stock Brokers said in a report. "These categories have witnessed healthy growth in Q3FY26 (Oct-Dec), reflecting the GST cut boost as level-playing field against the unorganised players," the report said.

 

The costs of most of the raw materials eased on a year on year basis, which helped the FMCG companies show decent performance in the December quarter. The companies said that the combined effect of lower input cost, tighter cost control, improved operating leverage and pricing hikes taken in earlier quarters supported the margins of most players, according to Anand Rathi Share.

 

The brokerage believes several FMCG stocks are trading at attractive valuations, especially given the expectations of stronger growth in 2026-27 (Apr-Mar). It expects revenue of companies under its coverage, including discretionary companies, to clock around 9% compound annual growth rate over FY26-FY28.

 

Friday, the Nifty FMCG index ended at 51772.70 points, up 0.6% from Thursday. Nine out of the 15 index constituents ended the session in the green. On a weekly basis, the Nifty FMCG closed higher after a fall in the previous week. Over the week, the index rose 1.7%, performing far better than the Nifty 50, which rose just 0.4%.

 

"Nifty FMCG index has been trading in a rising wedge formation on daily charts for past couple of weeks," Vipin Kumaar, assistant-vice president – technical and derivatives at Globe Capital Market, said. He has pegged resistance for the Nifty FMCG index at 53000 and support at 50500 points for next week. A decisive fall below 50500 might drag the index down towards 49300-49000 levels in the near term, while a sustained move above 53000 points might lead it to test 53900 points, he said.

 

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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	198.52	(-)1.50	203.90	192.10
Britannia Industries	6098.50	2.00	6171.80	6029.80
Colgate Palmolive India	2197.90	3.60	2236.90	2147.70
Dabur India	509.70	(-)0.50	517.80	496.30
Emami	479.60	(-)2.00	486.70	473.80
Godrej Consumer Products	1205.90	0.90	1226.00	1174.00
Hindustan Unilever	2314.50	0.40	2360.90	2255.10
ITC	327.00	4.20	329.40	323.80
Jyothy Labs	246.05	0.70	254.80	232.40
Marico	788.20	3.70	804.10	767.20
Nestle India	1293.80	0.90	1315.00	1265.80
Procter & Gamble Hygiene and Health Care	11501.00	(-)1.70	11633.70	11333.70
Tata Consumer Products	1156.20	2.10	1174.40	1144.40
Varun Beverages	453.85	1.00	460.60	446.00
Index	Levels
Nifty FMCG	51772.70	1.70	52282.30	51146.70
Nifty 50	25571.25	0.40	25822.00	25254.40
S&P BSE Sensex	82814.71	0.20	83643.50	81791.80

 

End

 

Reported by Simran Rede

Edited by Ashish Shirke

 

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