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Informist, Friday, May 15, 2026

 

MUMBAI – Shares of fast-moving consumer goods companies are expected to be rangebound next week, as high crude oil prices due to the war in West Asia and the hike in retail petrol and diesel prices will continue to put further pressure. However, these stocks have corrected sharply in recent months, which limits the chances of further fall, fundamental analysts covering the sector said.  

 

FMCG companies have already hiked product prices or reduced pack sizes over the past two quarters due to rising commodity prices. However, the conflict in West Asia and rising packaging and transport costs are expected to lead to further price hikes, weighing on FMCG companies' growth, an analyst at a top domestic brokerage said.

 

"... right now, the larger players have an advantage, at least the large listed firms, because smaller players will not be able to manage this high inflation," the analyst said. A rise in inflation will also depend on the magnitude of price hikes in retail petrol and diesel, he said.

 

On Friday, Indian Oil Corp. hiked petrol and diesel prices in New Delhi by INR 3 per litre to INR 97.77 and INR 90.67 per litre, respectively. The price hike comes amid a sharp increase in crude oil prices, putting pressure on the profitability of state-owned oil marketing companies.

 

Except for FMCG giant ITC, almost all companies in the sector have announced their March quarter earnings, which were broadly positive. However, management commentaries have cited the war in West Asia as the key near-term headwind.

 

Global consumer research firm Worldpanel by Numerator, formerly Kantar, cut its growth forecast for India's fast-moving consumer goods industry in 2026 to 3% from 5?rlier if the conflict continues beyond June and the monsoon remains weak, according to a report in The Economic Times. "The downgrade comes soon after the sector posted its strongest quarterly volume growth in two years, with FMCG sales volumes rising 5.4% in the March quarter from 3.5% a year earlier," the report said.

 

Given the current uncertain global geopolitical situation, FMCG companies are preparing for another round of price increases, as rising crude oil prices, higher packaging costs, and fuel expenses weigh on their margins, the analyst said. Prices of crude have been over the psychologically important mark of $100 per barrel for the most part since the start of the war at the end of February. At 1613 IST, Brent Crude oil futures contract traded 2.7% higher at $108.55 per barrel on the Intercontinental Exchange. 

 

Friday, the Nifty FMCG index closed 0.5% higher at 51051.35 points, while the benchmark Nifty 50 index settled 0.2% lower at 23643.50 points. For the week, both Nifty FMCG and Nifty 50 ended 2.2% lower each. During the week, Tata Consumer gained the most in the sectoral index, rising 4.9%, while Emami was the worst hit, falling by 6.3%.

 

TOP HEADLINES

 

* Honasa Consumer to get INR 189 mln as costs in Dubai distributor dispute
* Allied Blenders Q4 PAT falls 48% on yr  as finance, depreciation costs jump
* HC judge starts contempt case vs Kejriwal, recuses from hearing excise case
* Earnings Review: United Spirits PAT beats Street view on high premium sales
* KRBL Jan-Mar consol PAT rises 0.8% YoY to INR 1.55 billion
* Crompton Greaves posts INR 5.37 billion loss in Jan-Mar vs PAT year ago
* Earnings Outlook: Sales volume decline to hurt United Spirits PAT in Q4
* KPR Mill Jan-Mar consol PAT rises 11% YoY to INR 2.27 billion
* United Spirits signs amended purchase pact for Royal Challengers Sports sale
* Analyst Concall: Tata Consumer's mgmt not worried about margin next 2-3 mos
* Earnings Review: Tata Consumer Q4 consol PAT rises over 21% YoY,  beats view

 

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	199.73	(-)3.40	205.40	196.50
Britannia Industries	5,406.00	(-)2.10	5,452.00	5,342.00
Colgate Palmolive India	2,160.00	(-)1.70	2,184.50	2,122.90
Dabur India	467.70	(-)4.10	477.60	455.60
Emami	428.05	(-)6.30	438.90	416.20
Godrej Consumer Products	1,039.20	(-)0.30	1,057.00	1,019.00
Hindustan Unilever	2,272.20	(-)0.70	2,325.10	2,219.70
ITC	309.45	0.70	315.00	303.50
Jyothy Labs	219.30	(-)16.10	224.80	215.80
Marico	841.15	1.20	854.70	827.40
Nestle India	1,430.50	(-)3.50	1,481.80	1,401.80
Procter & Gamble Hygiene and Health Care	9,706.00	(-)2.30	10,037.30	9,469.30
Tata Consumer Products	1,234.00	4.90	1,267.60	1,209.00
Varun Beverages	503.80	(-)1.00	513.80	496.10
Index	Levels
Nifty FMCG	51051.35	(-)0.20	51753.10	50425.70
Nifty 50	23643.50	(-)2.20	23926.70	23468.70
S&P BSE Sensex	75237.99	(-)2.70	76146.90	74685.00

 

End

 

US$1 = INR 95.97

 

Reported by Simran Rede

Edited by Saji George Titus

 

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