In the past month, the BSE FMCG index underperformed the market by falling 3.3 per cent, compared to a 1.5 per cent fall in the BSE Sensex.
At the bourses, meanwhile, investors sought refuge in realty, pharma and the metal pack. Their respective indexes on the NSE gained up to 17 per cent thus far, ACE Equity data shows.
Analysts said, brent crude and palm oil respectively remained elevated by 47% and 13% on year-to-date (YTD) basis, which might keep margins under pressure for FMCG sector.
Tractor sales, the JM Financial study said, were most sensitive to El Nino conditions, recording weaker sales growth during the La Niña period, which is associated with excess rainfall.
Automobile, and fast-moving consumer goods (FMCG) companies are expected to post a mixed performance in the first quarter of FY27, with healthy demand offset by margin pressure from higher input costs
Aamar Deo Singh of Angel One said that it is still early to turn decisively bullish on FMCG and that "investors should wait for the monsoon outcome and further confirmation of a sustained recovery."
In the past one month, the FMCG index has underperformed the market, by falling 5 per cent, as against 2.3 per cent decline in Nifty 50.
Having witnessed a prolonged period of benign inflation in the last decade, we should have expected FMCG companies to witness great volume growth, if not value. However, the opposite has been true
Ajit Mishra of Religare Broking flags that ITC's overall chart structure remains negative, and the stock is likely to consolidate further in the near-term.
While companies have started to pass input cost rise to consumers, inflation, according to G Chokkalingam, founder and head of research at Equinomics Research has not become a major issue yet.
Britannia Industries reported a net profit of ₹678 crore, up 21.2 per cent from ₹560 crore in the year-ago period
Godrej Consumer reported a consolidated net profit of ₹451.77 crore, up 9.68 per cent from ₹411.90 crore in the corresponding quarter of the previous fiscal
The consumer sector now faces a delicate balance between sustaining demand and protecting profitability, with inflation once again emerging as the key swing factor
Thus far in the month of April, the FMCG index has surged 11.73 per cent, as against a 7.4 per cent gain in the benchmark index
Kunal Shah Senior Technical Analyst at Mirae Asset Sharekhan believes that Nestle India has given a decisive breakout on the weekly chart, and could potentially rally to ₹1,500-mark on the upside.
FMCG stocks lag market recovery as valuations hit six-year lows amid weak demand, rising competition and shifting investor focus to high-growth sectors
Sustained volatility in crude prices could create pressure on gross margins across the FMCG sector, warn analysts.
During a recent visit to its Haridwar facility, Patanjali Foods (PFL) management expressed cautious optimism, noting that the ongoing West Asia conflict has not affected spot edible oil prices
YES Securities believe Marico stock offers an attractive risk-reward for investors, with over 13 per cent EPS CAGR potential over FY25-28E
A combined 27.84 million equity shares representing 8.75 per cent of total equity of the Zydus Wellness changed hands on the NSE and BSE till 01:37 PM on Friday.