FMCG stocks in demand: HUL, Emami, Colgate, Dabur soar up to 6%

Easing geopolitical tensions and softening input costs are lifting overall sentiment in the consumer goods space, said analyst at Mirae Asset Sharekhan.

Fast moving consumer goods (FMCG) companies shares today

 

Shares of fast moving consumer goods (FMCG) companies were in focus with the Nifty FMCG index up nearly 3 per cent to 49,671.85 on the National Stock Exchange (NSE) in Friday’s intra-day trade on value buying. 

Hindustan Unilever (HUL), Colgate-Palmolive, Emami, Radico Khaitan, Dabur India and United Spirits from the FMCG index were up in the range of 3 per cent to 6 per cent in intra-day trade. 

At 10:37 AM on Friday, the Nifty FMCG index was the top gainer among sectoral indices up 2.3 per cent at 49,504.60, as compared to 0.34 per cent rise in the Nifty 50. Thus far in the month of April, the FMCG index has surged 9.07 per cent, as against 8.7 per cent gain in the benchmark index. 

 

However, so far in the calendar year 2026, the Nifty FMCG index has underperformed the market by plunging 10.5 per cent, as compared to 7 per cent decline recorded by the Nifty 50.  CATCH STOCK MARKET UPDATES TODAY LIVE

What’s driving FMCG stocks?

 

FMCG stocks are rising as investors are pivoting to defensive sectors like FMCG for portfolio stability amid broader market volatility. Further, easing geopolitical tensions and softening input costs are lifting overall sentiment in the consumer goods space, said Kruttika Prabhudesai Research analyst at Mirae Asset ShareKhan. 

Meanwhile, under a stable demand environment, FMCG players like Marico and Dabur India reported steady Q4 (January to March quarter) performance, with India businesses delivering high single-digit volume growth and sequential recovery in demand.  

Marico saw broad-based strength led by VAHO, Foods, and Premium Personal Care, with consolidated revenues growing in the low twenties, while Dabur’s domestic FMCG business also grew in high single digits, supported by strong traction in Home & Personal Care and organised channels. However, international operations for both players remained impacted, particularly in the Middle East due to geopolitical tensions, said analysts at Anand Rathi Share and Stock Brokers in the FMCG sector report. 

FMCG companies in India are planning a mix of selective price hikes and grammage cuts (reducing pack sizes) to offset rising input costs driven by the surge in crude oil prices amid the West Asia conflict. Higher crude has significantly increased packaging, logistics, and raw material costs, prompting companies like Parle and Dabur to consider price increases or smaller packs to protect margins. While some firms are also introducing lower pack sizes to maintain affordability, these actions could weigh on the nascent demand recovery, as companies balance margin protection with consumer sensitivity to price increases, the brokerage firm said.  READ | Gas stocks rally on US-Iran de-escalation hopes; analysts see limited gains 

According to Axis Securities, the FMCG sector continues to remain structurally attractive with multiple long-term growth levers intact. Several product categories remain under-penetrated, especially in rural markets, leaving meaningful headroom for volume expansion.. 

From an investment standpoint, the critical variables to track over the next few quarters include the pace and sustainability of urban demand recovery, margin trajectory as input costs evolve, and the degree of competitive intensity across categories. The balance between ad spend and margin delivery will also remain important, as companies invest for share gains while protecting profitability. Execution on premium portfolios and rural distribution expansion will be decisive for earnings acceleration, the brokerage firm said.  ========================================  Disclaimer: View and outlook shared on the stock belong to the respective brokerages and are not endorsed by Business Standard. Readers discretion is advised.