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Informist, Friday, Feb. 27, 2026

 

MUMBAI – Stocks of fast-moving consumer goods companies are expected to be range-bound next week as some fundamental factors pose headwinds for the growth in the sector. Analysts do not believe that the reduction in the goods and services tax has helped the sector enough to drive a major uptick in volume growth going ahead.

 

"The demand is gradually much better in the food segment... Apart from that, frankly, there is not much recovery in volumes in terms of the staples business," a fundamental analyst at a large domestic broking firm said. "So, most of the companies, the volume growth is likely to be suppressed."

 

Earlier, there were expectations that, after the GST cuts, companies would reduce product prices to pass on the benefits. However, analysts do not expect any more price cuts. Instead, they expect some amount of price increases in the coming quarters. "We do not expect any (revival), but in the packaged food space, it should see continued growth," the analyst said. "The other spaces will still continue to struggle later," he added.

 

The quantum of price hikes will depend on the movement in commodity prices and companies may do price hikes in the March and the June quarters, he said. This will negate the price cuts taken in the September and the December quarter, he said. For the next two, he expects commodity prices to remain largely benign.

 

The major headwind for the sector is low wages and a lack of job creation, analysts said. Moreover, the concerns about job losses due to the rise of artificial intelligence are seen as posing a risk to jobs and ultimately impacting consumption growth, the analyst said.

 

Asked about his view on FMCG stocks, the analyst said he does not expect any revival in these stocks for at least the next two to three quarters, except for packaged foods.   

 

Friday, the Nifty FMCG index closed 1.7% lower at 51142.20 points. On a weekly basis, the sectoral index fell 1.2%, broadly in line with the 1.5?cline in the benchmark Nifty 50. The sectoral index is expected to face resistance at 52600 points and find support at 50000 points. Technical analysts expect the index to remain in the negative territory until there is any major positive news for the sector.

 

TOP HEADLINES

 

* Delhi court discharges Kejriwal, Sisodia, others in CBI's liquor policy case
* SC rules Hamdard's Rooh Afza fruit drink, to attract lower 4% VAT

 

The 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	189.10	(-)4.80	191.00	187.20
Britannia Industries	6002.50	(-)1.60	6207.50	5872.50
Colgate Palmolive India	2254.50	2.60	2324.60	2208.60
Dabur India	518.50	1.70	532.20	505.20
Emami	462.60	(-)3.50	481.80	451.20
Godrej Consumer Products	1217.50	1.00	1248.90	1197.50
Hindustan Unilever	2338.10	1.00	2397.50	2300.90
ITC	313.60	(-)4.10	319.80	309.60
Jyothy Labs	253.46	3.00	260.70	244.10
Marico	788.65	0.10	815.60	773.30
Nestle India	1291.70	(-)0.20	1337.10	1263.30
Procter & Gamble Hygiene and Health Care	11351.00	(-)1.30	11553.00	11185.00
Tata Consumer Products	1141.00	(-)1.30	1169.70	1120.50
Varun Beverages	451.40	(-)0.50	469.90	440.30
Index	Levels
Nifty FMCG	51142.20	(-)1.20	52338.10	50441.20
Nifty 50	25178.65	(-)1.50	25600.60	24930.40
S&P BSE Sensex	81287.19	(-)1.80	82651.20	80477.20

 

End

 

Reported by Simran Rede

Edited by Saji George Titus

 

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