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Informist, Thursday, Jun. 25, 2026

MUMBAI – Shares of fast-moving consumer goods companies are expected to show slight recovery from the consolidation phase in which the sector has been stuck for months. This is likely to be aided by overall gains in the market after the cooling of the situation in West Asia following the peace deal talks between the US and Iran. Moreover, finalisation of a trade deal between the US and India will also support the sentiment.

On the fundamental front, the sales volume of FMCG companies is expected to decline on a sequential basis due to the impact of the West Asia war. The growth in volume is likely to contract by a couple of percentage points in the June quarter from Jan-Mar. "So for example, if HUL had done 6% last quarter, it could be as low as 4-5%, maybe 100-200 basis points," an FMCG analyst at a domestic brokerage said.

The sharp rise in crude oil prices will likely hit the crude-linked input costs of FMCG companies for the June quarter. However, this will not continue in the September quarter as raw material prices started to cool off after the opening of the Strait of Hormuz.

"The overall revenue growth for FMCG companies could be more evenly divided between the price hikes that they have taken and the volume growth," the analyst said. These companies are unlikely to take further price hikes given moderation in input costs, as they would not like to disturb the demand situation further, he said.

When asked if FMCG companies would increase prices further, the analysts said, "A month back, the answer would have been that yes, there would be further price hikes. But what has happened in the past month is that we have seen a dramatic cooling of crude-linked inputs. So not expecting much of further pricing action."

On Thursday, the Nifty FMCG index closed 0.7% higher at 49419.25 points. The Nifty 50 settled at 24056, up 34.35 points or 0.1%. The BSE Sensex ended at 77100.47, up 109.25 points or 0.1%. For the week, the sectoral index closed 0.3% lower, compared with a 0.2% rise of the benchmark Nifty 50.

"The FMCG index has been in a lower-lows and lower-highs formation since September 2024. Recently, it has shown initial signs of consolidation within a broad range, breaking the sequence by registering its first higher-low during the second week of June," said Vipin Kumar, technical and derivatives analyst at Globe Capital Market. "A higher-high above the 52225 level (which also aligns with the one-year EMA, or exponential moving average) will confirm the start of a recovery mode," 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:

End

Reported by Simran Rede

Edited by Akul Nishant Akhoury

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