FMCG Stocks Outlook for the week – 24 to 28.04.2017

FMCG Stocks Outlook for the week – 24 to 28.04.2017

Free Intraday Tips : Join Our Whatsapp No : 9841986753
Free Commodity Tips : Join our Whatsapp No : 9094047040

FMCG Stocks Outlook for the week – 10 to 14.04.2017 )

The Fast moving consumer goods companies are seen trading in a tight range next week as most companies are likely to gain some momentum in hopes of good southwest monsoon this year. India is likely to receive "normal" southwest monsoon rainfall for the second consecutive year in 2017, despite the threat of El Nino conditions developing, according to the India Meteorological Department. Southwest monsoon rainfall in India is likely to be 96% of the long-period average, the weather bureau said. Monsoon has a large impact on sales of FMCG companies, especially in rural areas. Good rains during the Jun-Sep monsoon also help soften commodity prices, which in turn helps companies struggling with high input costs. Sales of most FMCG companies had taken a hit post demonetisation. Though the effect has nearly worn out due to remonetisation, growth in wholesale channel remains sluggish. While volume growth for companies like ITC, Hindustan Unilever, and Dabur India is likely to remain in low single digit in the near term, Marico, Godrej Consumer Products and Britannia Industries may see a 6-8% growth. Some companies could also opt for price hikes before the goods and services tax rates are finalised. A pullback of promotional offers and campaigns can also be expected in the days to come.

Source : Cogencis Information Services Ltd.