FMCG stocks shine as the sector outperforms Nifty this week

The Nifty FMCG index was trading with gains of as much as 2% on Wednesday, April 9. 13 out of the 15 index constituents were trading with gains. Stocks like Nestle India, Godrej Consumer Products, Britannia Industries, Emami, Hindustan Unilever, and Colgate-Palmolive (India) were trading with gains between 2% and 4%.

FMCG stocks outperformed as the Reserve Bank of India's (RBI) rate cut and lower inflation forecast sparked hopes of stronger demand in the new financial year. The Nifty Consumer Durables also posted modest gains of 0.3%.



For the week, the Nifty FMCG index posted gains of over 2.6%, while the Nifty 50 lost 2.2%.

Brokerage firm Nuvama Institutional Eqities maintains a 'Buy' rating on Britannia Industries and are positive on the FMCG pack. Factors at play a. Skymet expects normal monsoon this year b.

Wheat crop seems better than initially feared heat wave impact c. Crude Oil prices at 4-year lows will aid margins as packaging cost will fall d. Gradual recovery in demand is expected starting Q2FY26 due to - lower food inflation - Interest rate cuts leading to lower EMI - Tax rebates for salaried class starting this month.