More Stories

Informist, Friday, May 22, 2026

MUMBAI – Amid the ongoing war in West Asia, rising costs for fast-moving consumer goods companies are expected to weigh on the stocks. FMCG companies are likely to continue the weak momentum next week as well, analysts said. Investors are also likely to book profits in the short term, they said.

The disruptions in the supply of crude oil and oil-derived products are likely to push prices of FMCG products higher after the companies use their buffer stock. Although West Asia is expected to drive commodity prices higher, along with high inflation figures affecting consumer sentiment in the near term, some FMCG-sector analysts believe this will not have a very large impact on the FMCG sector but will affect consumer sentiment in sectors such as automobiles. "As inflationary pressures build, consumers are expected to cut back on discretionary spending and reduce shopping frequency," as per a Mint report.

A recent report by global consumer data and market research company Worldpanel by Numerator, formerly Kantar, said products such as hair oil, biscuits, and jams could be under pressure due to rising inflation. Additionally, categories such as chips and snacking, which are dependent on oil-linked inputs and logistics, will also face repercussions, the Mint reported.

Brent crude oil continues to hover at $90-$100 a barrel after the closure of the Strait of Hormuz through which about a fifth of the world's oil and liquefied natural gas usually passes. At 1738 IST, the Brent Crude Oil futures contract was 2% higher at $104.54 per barrel on the Intercontinental Exchange. 

Volumes of FMCG companies are also expected to soften in 2026 due to high crude oil prices, rising inflation, and early projections of below-normal monsoon, analysts said. For the four-month period of Jun-Sept, monsoon is likely to be below normal to the tune of 94% of the long-period average of 868.6 millimetres, Skymet said. 

In its earlier forecast in January, the private weather agency had said the 2026 monsoon is likely to be below normal and said it has now retained the same outlook. The Indian southwest monsoon is expected to weaken significantly in the second half due to the onset and development of El Nino, according to the private weather forecasting agency.

Technical charts suggest the possibility of further downside for the FMCG index towards 49181 points, said Sundar Kewat, technical and derivatives analyst at Ashika Institutional Equity Research. "Unless the index reclaims the 50,950–51,000 (points) zone decisively, rallies are likely to witness selling pressure at higher levels," he said.

Despite the weak outlook for the sector, selective stock-specific opportunities are likely to be visible for stocks such as Britannia Industries and Nestle India. Britannia is currently trading near its crucial support around INR 5,300 and is expected to witness some recovery towards INR 5,700 in the near term, Kewat said. "Sustaining above support is likely to attract fresh positional buying interest," he added.

Nestle India's stock has seen a strong rally to INR 1,498 from INR 1,159 in recent sessions before a strong correction, Kewat said. Current levels indicate a potential continuation of the uptrend, and the stock is likely to test INR 1,498 level, he said. "A decisive breakout above this resistance could trigger fresh upside momentum and open the door for further gains," he said. 

On Friday, the Nifty FMCG index closed flat at 50249.80 points. The benchmark Nifty 50 index settled 0.3% higher at 23719.30 points. Over the week, the FMCG sectoral index declined 1.6% while the 50-stock index logged over 0.3% gains. However, so far this month, both the indices have fallen over 1% each. 

TOP HEADLINES

* Bikaji Foods Jan-Mar consol PAT rises 26% YoY to INR 564 million
* Allied Blenders appoints Amar Sinha as MD for 3 years from Jun 1
* Honasa Consumer Jan-Mar consol PAT up nearly 3-fold YoY at INR 691.93 mln
* Emami Jan-Mar consol PAT falls 11.7% YoY as sales down 3.9%
* Earnings Outlook: Colgate-Palmolive Q4 PAT seen down on margin pressure
* Analyst Concall: Astral sees FY27 plumbing ops EBITDA margin down at 16-18%
* Astral aims 10-15% volume growth in pipes in FY27, value growth seen higher
* SC notice to govt, Globus Spirits on PIL to ban alcohol sale in tetra packs
* Hatsun Agro Product Jan-Mar net profit rises 18% on year to INR 508.9 mln
* HC issues contempt notices to Kejriwal, others over posts against judge
* Earnings Review:Astral PAT misses view despite higher plumbing, paints sales
* United Breweries to shut Ludhiana plant from Jun 30; to buy contracted beer
* Zydus Wellness Jan-Mar consol PAT falls 5.8% YoY to INR 1.62 billion
* SC directs no coercive action against United Spirits in INR 4-bln demand
* Earnings Outlook:High volumes, inventory gains to drive Astral Q4 PAT, sales
* Earnings Review: Godfrey Phillips Q4 PAT up sharply, sales growth modest
* Analyst Concall:United Spirits to roll out 180-200 ml packs across portfolio

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:

End

US$1 = INR 95.69

Reported by Simran Rede

Edited by Akul Nishant Akhoury

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. 2026. All rights reserved.