FMCG Stocks Outlook for the week – 12 to 16.10.2015
(Rangebound
trade with eye on Q2 earnings)
( www.rupeedesk.in )
Stocks
of fast moving consumer goods companies are seen trading rangebound next week
as investors keep an eye on Jul-Sep earnings. Hindustan Unilever, which will
release its results on Wednesday, is expected to set the tone for the earnings
season.
Due
to weak rural demand driven by the erratic monsoons, we expect companies to
report weak volume growth. We would watch out for negative surprises.
Bajaj
Corp came out with its results this week. Though the earnings were higher
year-on-year, volume growth declined to about 8% in Jul-Sep from 12% in
Apr-Jun, which weighed on market sentiment.
Data
on consumer price index-based inflation and industrial growth that will be
released on Monday will impact broader market and in turn have a bearing on the
FMCG stocks.
