Sep 7, 2021
By: bhakti.makwana@timesinternet.in
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Nifty FMCG (11 percent) and BSE FMCG (9 percent) were among the top sectoral gainers in the last 30 days. Fast moving consumer goods (FMCG) companies typically sell packaged foods, toiletries, consumables and personal care brands.
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Analysts believe FMCG stocks came into limelight, as they are considered a safe investment option, amid recent global sell-off.
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In the last few weeks, Indian markets remained under pressure, after the US Federal Reserve signalled that it would withdraw economic stimulus measures. Investors worried that the move would lead to outflows from emerging markets leading to a huge sell off.
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Due to these concerns, investors started shifting their investments towards defensive stocks like FMCG companies.
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Except for ITC, all consumer goods stocks in Nifty 50 -- Hindustan Unilever, Tata Consumer Products, Britannia and Nestle India delivered 12-17 percent returns in the last 30 days.
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ITC has underperformed its peers as it fell 0.49 percent in the last 30 days. Brokerage firm CLSA Global Markets reportedly believes that this fall has resulted in a steep valuation discount.
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“We believe ITC’s FMCG business is firmly on path for a profitable scale-up with multiple value creation opportunities,” it said. Hence, the brokerage firm has reportedly maintained a “buy” rating on the stocks.
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HUL was among the top gainers on Nifty50 with close to 17 percent returns in the last one month. A CNBC-TV18 report said that the FMCG giant HUL has hiked detergent, soaps prices by 3.5-14 percent along with reducing the grammage of small packs of soaps and detergents.
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Also, HUL is among the top five companies with highest market capitalisation. Its market cap, as of September 7, is ₹6.50 lakh crore. Except Nifty FMCG and Nifty Media all other sectoral indices were either flat or in red as on September 7.
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