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Informist, Friday, Jul. 10, 2026

 

MUMBAI – Shares of fast-moving consumer goods companies are likely to see limited gains next week amid risks to earnings growth due to below-average monsoon, which could hit rural demand going forward. However, these stocks are not expected to see any major fall as these stocks have already fallen sharply from highs at a time when demand has improved over the past two quarters.

 

"It (Nifty FMCG) has historically given strong up move after falling around 30% from highs," Kapil Shah, technical analyst at Emkay Global Financial Services, said. On Friday, the Nifty FMCG index was down nearly 26% lower from its lifetime high.

 

Analysts said demand in the sector has improved over the past few quarters and companies also managed to pass on higher costs due to the US-Iran war to consumers. "Revenue growth is expected to remain largely volume-led (in the June quarter), aided by improving consumer demand, healthy agricultural cash flows following a robust rabi harvest, continued premiumization across key categories, and the rapid expansion of quick commerce channels," Axis Securities said in its earnings preview.

 

Most of the fast-moving consumer goods that are part of the Nifty 200 index are expected to report revenue growth, aided by volume growth. However, some large companies of the sector such as Hindustan Unilever Ltd. and ITC Ltd. are likely to be a drag on the overall earnings growth, analysts estimates showed.

 

The cumulative revenue of 13 FMCG companies of the Nifty 200 index is likely to rise 6% on year and net profit is likely to fall 1%, according to estimates from 11 brokerages. Excluding HUL and ITC, the revenue of the remaining 11 FMCG companies is expected to rise 11% and net profit is expected to jump 10%.

 

While demand has improved for daily-use products, there are concerns that the below-normal forecast for rainfall this monsoon may hit the incomes of the rural population, thereby affecting consumption demand. Further, there is a possibility of some hit to margins in the coming months as supply disruption due to the war pushed prices of raw materials higher.

 

"However, input cost inflation (glass, packaging, PET, and select agri-commodities) has started flowing through, with only a partial impact on 1Q (Apr-Jun) margins owing to older inventory and recent price hikes. The full cost impact is likely to be visible in 2QFY27 (Jul-Sept)," Motilal Oswal Financial Services said in its preview report.

 

TOP HEADLINES

* India Jan-May tea exports down 15% on year at INR 26.13 bln, says Tea Board
* Honasa Consumer sees Q1 operating margin in double digits, sales in 20s
* United Spirits gets regulatory nod to shut Hyderabad mfg plant from Wed
* NCLT admits Resurgent India's insolvency plea against Future Consumer
* AWL Agri Business Q1 volumes up in mid-single digit YoY, led by food ops
* Godrej Consumer sees high-teen rise in Q1 consol revenue; margins to be lower
* Dabur India says Q1 consol revenue, PAT seen growing in double-digits on yr

 

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	190.00	(-)0.60	195.70	183.60
Britannia Industries	5353.00	(-)0.50	5442.30	5278.30
Colgate Palmolive India	2052.40	0.30	2081.90	2032.30
Dabur India	443.50	(-)0.20	449.80	437.90
Emami	421.40	0.30	428.50	412.50
Godrej Consumer Products	1088.40	1.10	1105.80	1075.60
Hindustan Unilever	2150.60	(-)2.30	2190.90	2124.90
ITC	281.75	(-)2.80	284.90	279.30
Jyothy Labs	200.54	4.40	206.60	197.00
Marico	852.50	1.70	871.20	838.00
Nestle India	1455.20	(-)0.30	1481.30	1435.30
Procter & Gamble Hygiene and Health Care	8940.00	0.40	9052.00	8836.00
Tata Consumer Products	1111.90	(-)0.40	1124.20	1098.80
Varun Beverages	478.10	(-)7.30	492.80	468.40
Index	Levels
Nifty FMCG	49310.60	(-)1.60	49827.40	48944.50
Nifty 50	24206.90	(-)0.30	24293.30	24077.10
S&P BSE Sensex	77569.39	(-)0.30	77832.40	77189.10

 

End

 

Reported by Anshul Choudhary

Edited by Avishek Dutta

 

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