FMCG stocks decline as IMD predicts below normal monsoon

Shares of six FMCG stocks fell by 0.21% to 1.05% at 11:20 IST on BSE after the India Meteorological Department said rains this year will be below normal as the chances of El Nino occurring during monsoon are very high.

The BSE FMCG index was down 0.48% at 6,900.64. It underperformed the Sensex, which was down 0.43% at 25,469.64.

ITC (down 1.05% to Rs 335.10), Tata Global Beverages (down 0.96% at Rs 169.60), Marico (down 0.77% at Rs 249.80), Dabur India (down 0.82% at Rs 188), Godrej Consumer Products (down 0.18% at Rs 843.30), and Nestle India (down 0.21% at Rs 4,883.95) edged lower.

Britannia Industries (up 0.22% at Rs 882.90), Colgate-Palmolive (India) (up 0.79% to Rs 1,436.45) and Hindustan Unilever (up 0.18% to Rs 633.20) gained.

The BSE FMCG index had underperformed the market over the past one month till 9 June 2014, rising 1.95% compared with the Sensex's 11.25% rise. The index also underperformed the market in past one quarter, rising 4.86% as against Sensex's 16.7% rise.

Shares of FMCG companies declined after the India Meteorological Department (IMD) on Monday, 9 June 2014, said rains this year will be below normal as the chances of El Nino occurring during monsoon are very high at more than 70%. FMCG firms derive substantial revenue from rural India.

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