Latest news with #NiftyFMCG
Business Standard
12 hours ago
- Business
- Business Standard
Quick Wrap: Nifty Realty Index rises 2.31%
Nifty Realty index closed up 2.31% at 971.25 today. The index is up 10.00% over last one month. Among the constituents, Brigade Enterprises Ltd gained 7.48%, Prestige Estates Projects Ltd added 4.98% and Anant Raj Ltd jumped 3.33%. The Nifty Realty index is down 5.00% over last one year compared to the 9.70% surge in benchmark Nifty 50 index. In other indices, Nifty PSU Bank index added 2.15% and Nifty FMCG index added 0.81% on the day. In broad markets, the Nifty 50 has dropped 0.14% to close at 24716.6 while the SENSEX is down 0.09% to close at 81373.75 today.
Mint
3 days ago
- Business
- Mint
FMCG stocks face margin pressure. Here's why
The fast-moving consumer goods (FMCG) sector is seen as a favourite among investors due to its stable cash flows and performance even in turbulent times. But recently, FMCG companies have been facing a new wave of margin pressure. From rising input costs to subdued demand, multiple forces are compressing the profitability for companies, and the markets are taking notice. Market acknowledgement of this fact is reflected in the performance of the FMCG index. Looking at the broader markets over the past year, the Nifty FMCG index rose 0.96% as compared to a 9.06% increase in the Nifty50. Here's a closer look at why FMCG stocks are under margin pressure right now. Reasons for Margin Pressure At the core of the problem is cost inflation. Sharp price rise in key raw materials- especially palm oil, wheat, maida, potato, cocoa, tea, etc, have pressured margins and have made it necessary for the companies to raise the prices. But companies can pass on these costs through price hikes only to some extent. The confluence of a few macro factors further impacted the margins, which have pushed global commodity prices higher. These factors are: geopolitical disturbances due to the Russia-Ukraine war, the Israel-Hamas war, and reciprocal trade tariffs by the US. Slowdown in various advanced economies, including the US and the UK, and climate change (untimely monsoon, floods, droughts) are the other factors. Managements of various top FMCG giants have highlighted the uncertainty in input costs and remain cautious in their margin guidance in the recent investor presentations. The management of Hindustan Unilever Ltd (HUL) revised FY26 earnings before interest, tax, depreciation, and amortization (Ebitda) margin guidance downward from 23–24% to 22–23% due to inflation. Operating profit margins (OPM) for FY25 of Marico Ltd are lower, from 21% to 20%, while Britannia's margins have fallen from 18% to 16.4%. Further, the pace of real GDP growth decreased from 9.2% in FY24 to 6.5% in FY25. The weakness in consumption was seen in the flat volume growth of the FMCG sector, both in rural and urban areas. To make matters worse, India's consumer food price index fluctuated during the previous fiscal year, with a peak in October 2024 (marking an inflation rate of 10.08%). The cumulative impact of inflationary pressures, as well as low GDP growth, has pulled down household savings and reduced consumption expenditure. Another factor contributing to the margin pressure is the intense competition in the FMCG space, not just from large brands but also from aggressive local players and small direct-to-consumer (D2C) brands. Recovery signs in the FMCG space Despite a weak short-term outlook, the FMCG companies are cautiously positive for the FY26 recovery. Management sees macro factors to normalise soon, including stabilising CPI inflation, easing raw material prices. India's overall retail inflation fell to 3.16% in April 2025, the lowest in nearly six years. Companies are implementing gradual price increases to slowly rebuild and recover their margins without disturbing the demand. Consumption expenditure is expected to pick up slowly due to the continuous recovery in rural demand because of the good monsoon. Further, improvement in urban demand can be seen due to lower inflation levels and tax cuts announced in the Union Budget, which is expected to boost disposable incomes. What could turn things around? The companies are focusing on deepening penetration and distribution in core and growth categories. The companies continue to execute on their strategy of premiumization (a shift towards branded products) and innovation. Companies are improving supply chain management and achieving cost optimization through modern trade, e-commerce, quick commerce, and digital transformation. They are continuously focusing on volume-led competitive growth. Conclusion The FMCG stocks are facing margin pressures right now. Rising input costs, weak demand, and intense competition, all putting pressure on the profitability of the companies and affecting the revenue growth as well. For FMCG companies, the solution lies in premiumization, cost optimization, deeper penetration, and digital transformation. Investors should be selective with stock picking, looking for companies that are adjusting to changing consumer preferences through product innovation and deeper distribution. Investors should evaluate the company's fundamentals, corporate governance, and valuations of the stock before making any investment decisions. Happy Investing. Disclaimer: This article is for information purposes only. It is not a stock recommendation and should not be treated as such. This article is syndicated from
New Indian Express
6 days ago
- Business
- New Indian Express
Sensex slips 240 points, Nifty50 sheds 74 points amid cautious investor sentiment on Wednesday
CHENNAI: Indian equity benchmarks ended Wednesday's session in the red, following a choppy day of trade marked by profit booking and cautious investor sentiment ahead of key macroeconomic data releases later this week. The BSE Sensex slipped 239.31 points or 0.29% to close at 81,312.32, after oscillating between 81,613.36 and 81,244.02 during the day. Similarly, the NSE Nifty50 shed 73.75 points or 0.30%, ending at 24,752.45, with an intraday range of 24,864.25 to 24,737.05. Index Performance: Sensex: 81,312.32 (−0.29%) Nifty50: 24,752.45 (−0.30%) Nifty Midcap100: (−0.02%) Nifty Smallcap100: (+0.33%) Sectoral Overview: Market sentiment was weighed down by weakness across most sectoral indices. The Nifty FMCG index led the decline, plunging 1.49% amid heavy selling in heavyweight ITC, which dropped 1.17% after British American Tobacco (BAT) offloaded a 2.5% stake, relinquishing its veto rights in the company. Other laggards included Nifty Auto (−0.61%), Nifty Metal (−0.68%) Nifty Pharma (−0.35%), Nifty Consumer Durables (−0.46%), Nifty Healthcare: (−0.33%). But, defying the trend, select sectors, including Nifty Media (+1.04%), Nifty PSU Bank (+0.97%), closed higher.
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Business Standard
6 days ago
- Business
- Business Standard
Fall in ITC shares drag Nifty FMCG index 2%; Nestle, Emami down 2% each
Nifty FMCG Index in focus: The Nifty FMCG index, a stock market index that tracks the performance of the Indian Fast-Moving Consumer Goods (FMCG) sector, came under pressure on Wednesday, May 28, 2025, slipping as much as 1.56 per cent to hit an intraday low of 55,663.40 levels. Leading the decline in the FMCG pack around 3:00 PM were shares of ITC, Nestle, Emami, and Tata Consumer, which fell between 1.1 per cent and 2.5 per cent. Other notable laggards included United Spirits (down 0.78 per cent), Hindustan Unilever (down 0.63 per cent), Varun Beverages (down 0.25 per cent), Britannia (down 0.16 per cent), and Godrej Consumer (down 0.12 per cent). However, not all stocks in the index were in the red. Gainers included Dabur (up 0.08 per cent), Patanjali Foods (up 0.16 per cent), Marico (up 0.50 per cent), Radico Khaitan (up 0.51 per cent), Colgate-Palmolive (up 1.17 per cent), and United Breweries (up 1.36 per cent). ITC slides on block deal In a filing to the London Stock Exchange (LSE) on Wednesday, the maker of Dunhill and Lucky Strike cigarettes said it had completed the sale of 313 million ordinary shares in ITC through an accelerated bookbuild process targeting institutional investors. The transaction, representing 2.5 per cent of ITC's equity, generated net proceeds of ₹12,900 crore. Following the sale, BAT's stake in ITC is expected to decrease to approximately 22.9 per cent. A day earlier, BAT had announced plans to divest part of its holding, stating it would remain a significant shareholder with a 23.1 per cent stake. At 2:44 PM, the FMCG index remained near its day's low, trading 1.31 per cent lower at 55,804.10. In contrast, the benchmark Nifty50 was down just 0.17 per cent, hovering at 24,784.50 level.
Mint
6 days ago
- Business
- Mint
Indian stock market: Can Nifty 50 break 25K hurdle this weak or more pain ahead?
Stock market today: Indian indices - Sensex and Nifty - opened on a flat note in Wednesday's trading session, despite positive market buzz in US and Asian peers. At the beginning of the trading session, the BSE Sensex stood at 81,457.61, registering a drop of 94 points or 0.12%, while the NSE Nifty 50 opened slightly higher at 24,832.50, up by 6.30 points or 0.03%. In the initial trading hour on the NSE, the Nifty FMCG index declined by approximately 1.22%, making it the worst-performing sector, followed by losses in Metal, Consumer Durables, and Auto. On the other hand, Nifty IT gained 0.5%, leading the advancing sectors, with Nifty PSU Bank and Nifty Realty each rising by 0.3%. On Tuesday, both indices fell more than 1 per cent due to weak global cues and heavy profit booking ahead of monthly expiry. The NSE Nifty declined by 0.7%, dropping 174.95 points to close at 24,826.20, while the BSE Sensex slipped 0.8%, falling 624.82 points to end at 81,551.63. "The nifty ended lower yesterday in a rather volatile trading session. Technically speaking, 24462 remains a critical swing low. If it holds - and this is the preferred view - the market will target first resistance at 25116 and then 25390. On the other hand, should 24462 break, a "rising wedge" pattern will be activated, with a downside target set near the 23900 - 24000 area. We mentioned 24822 yesterday as important short-term support, and despite falling below this level, the index closed slightly above it. The message is that this level remains important tactically. Meanwhile, the global macro picture and market sentiment remain supportive, especially with President Trump extending the deadline for EU tariffs to the 9th of July," said Akshay Chinchalkar, Head of Research, Axis Securities. Riyank Arora, Technical Analyst at Mehta Equities Ltd, says that Nifty 50 is currently navigating a crucial juncture, with the 25,000 mark acting as a psychological and technical hurdle. Despite recent attempts, the index has struggled to sustain momentum above this level. The immediate resistance lies at 25,100–25,150, and only a decisive breakout above this zone, backed by strong volumes, can signal a fresh leg of the rally. Until then, upside moves may face selling pressure from short-term traders booking profits near resistance. On the downside, the 24,700 level remains a key support. A breach below this level could trigger a deeper correction, potentially dragging the index toward lower support zones around 24,500, according to Arora. 'With the market showing signs of indecisiveness and global cues adding to volatility, traders should stay cautious. For now, Nifty needs to hold above 24,700 and convincingly break past 25,150 for any meaningful upward momentum to resume,' Arora added. Disclaimer: This story is for educational purposes only. The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions.
