FMCG in a range, bank scrips to rise

Shares of fast moving consumer goods (FMCG) companies are seen range-bound for the next one to two weeks on a lack of triggers, dealers and analysts said. With hopes of another round of reduction in the Cash Reserve Ratio (CRR) emerging, bank shares are seen in the positive zone next week.

“With most FMCG firms refusing to pass on the excise duty reduction through price cuts, there are no triggers as of now. So in the near term, they may remain range-bound ... defensive buying will provide support amid market declines,” said a chief dealer at a domestic brokerage.

However, the medium-to-long term story for the FMCG sector remains intact, analysts said. Fall in commodity prices and fuel price cut are key triggers that will help these companies shore up their margins, especially if they continue to hold prices firm, an analyst said.