New Delhi, March 19 (IANS) Fast Moving Consumer Goods (FMCG) stocks are trading weak on Tuesday with the sectoral index down 1.9 per cent. FMCG index is among the top sectoral losers, affecting key players like Nestle, Colgate Palmolive, Honasa Consumer, Tata Consumer, Patanjali Foods, United Breweries, Godrej Consumer, and Britannia. BSE Sensex is down more than 600 points due to broad-based selling.
The corporate commentary on the FMCG sector highlights muted demand setting prevailing in Q4FY24, projected by data agencies for CY24. Nielsen and Kantar both forecasted a 4.5-6.5 per cent value growth for the sector, reflecting a weak outlook for the coming months. The El-Nino effect is expected to remain until May-24, impacting agri growth and consumption patterns.
Emkay Global Financial Services added that there is no material shift in consumption expected from elections, contributing to a weak demand outlook for 1HFY25. With most sectoral indices trading in the red, the FMCG sector faces challenges in the coming months. Investors and analysts are closely monitoring the situation to gauge the potential impact on the overall market.
The FMCG sector’s performance is closely linked to consumer sentiment and economic indicators. The ongoing trends in demand and growth projections indicate a challenging period ahead for FMCG companies. Stakeholders are advised to stay informed and evaluate their investment strategies in light of the current market conditions. Stay tuned for more updates on the FMCG sector as the situation unfolds.
–IANS
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