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Informist, Friday, Aug. 28, 2026

 

MUMBAI – Higher crude oil prices and inflationary pressures are likely to limit the sales growth and profitability of fast-moving consumer goods companies in the near term, according to analysts tracking the sector. Further, the weak monsoon will hit demand for consumer products at a time when these companies are already reckoning with high inventory costs and a demand downturn on account of recent price increases to pass on the rise in input costs. Taken together, these factors will continue to add to the bearish sentiment around FMCG stocks.

 

Friday, the Nifty FMCG index closed at 46815 points, down 0.5%, among the worse-hit sectoral indices on the day. The index also ended lower for the third consecutive week. Over the past 30 days, it has fallen more than 4%, underperforming the benchmark Nifty 50 index. The zone between 47800–47900 points will act as a crucial resistance zone for the index in the near term, Jay Vora, technical analyst at Mirae Asset Sharekhan, said. Until the index manages to breach this zone, technical charts show the possibility of a further decline. On the downside, Vora said the index could sink to its April low of 45300 points.

 

The recent surge in sugar prices has also kept stocks of companies dependent on the commodity under pressure. However, the increase in sugar prices is unlikely to cause significant distress for FMCG companies. "All these companies have a good amount of inventory, and they have a larger contract with the supplier at least for six to nine months," a senior researcher at a domestic broking firm said. He also highlighted the correction in sugar prices following the government's imposition of stock-holding limits for bulk buyers. Moreover, large FMCG players will face an even lower impact of this price surge owing to their diversified supply chain and sugar alternatives in processing. If supply tightness continues, he expects the sector to be affected only towards the end of the December quarter or in the March quarter.

 

The uneven monsoon is likely to weigh more on demand, according to analysts tracking the sector. However, select sub-categories such as food and beverages could do well, according to the researcher.

 

Amid high crude oil prices, which are close to $90 per barrel, and high palm oil prices, a key input for FMCG products, inflationary pressures are likely to continue, according to the researcher. The lack of festivity-induced buying in the September quarter will do little to improve demand, unlike in the year-ago period.

 

While there are no significant innovations playing out in the sector, changes in the channel mix would be something to watch out for, the researcher said. Commentary on quick commerce and e-commerce channels will be a key takeaway for investors.

 

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* Honasa Consumer calls off proposed acquisition of Fluence Pharma
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* Dabur says no impact of flash floods on Nepal ops; 3 distributors likely hit

 

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	196.27	4.30	201.50	192.70
Britannia Industries	5,308.50	(-)1.10	5,391.80	5,234.80
Colgate Palmolive India	1,826.90	(-)3.30	1,861.50	1,807.70
Dabur India	386.00	(-)3.60	390.20	381.00
Emami	379.40	(-)5.80	392.30	371.80
Godrej Consumer Products	915.00	(-)1.90	934.30	901.90
Hindustan Unilever	2,010.40	(-)0.20	2,029.10	1,988.10
ITC	266.00	(-)1.30	270.80	262.40
Jyothy Labs	207.40	1.20	211.80	203.90
Marico	829.65	(-)2.30	846.50	818.00
Nestle India	1,454.60	(-)1.50	1,468.20	1,431.20
Procter & Gamble Hygiene and Health Care	8,092.00	(-)1.20	8,199.70	8,022.70
Tata Consumer Products	1,040.70	(-)0.80	1,056.00	1,022.80
Varun Beverages	414.00	(-)3.70	424.40	407.00
Index	Level
Nifty FMCG	46815.00	(-)1.50	47348.80	46355.30
Nifty 50	24175.65	(-)0.30	24258.40	24035.50
S&P BSE Sensex	77264.51	(-)0.40	77573.30	76833.80

 

End

 

Reported by Shruti Nair

Edited by Rajeev Pai

 

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