FMCG Stocks Outlook for the week – 12 to 16.06.2017

FMCG Stocks Outlook for the week – 12 to 16.06.2017

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

FMCG Stocks Outlook for the week – 12 to 16.06.2017 )

Stocks of most fast moving consumer goods companies are seen falling next week as traders may
book profits after the rise in these stocks in the past few weeks. Premiumisation across certain
segments such as laundry and soaps could be seen in the near future and companies would seek to
focus on strengthening presence in rural areas. With the rainfall prediction being good for this year, companies would like to build their presence in smaller tier-II, tier-III towns. They would also be wary of uncertainty due to GST (goods and services tax) rollout. The India Meteorological epartment on Tuesday scaled up its forecast for the southwest monsoon this year to 98% of the long period average from 96% predicted earlier. A good monsoon augurs well for demand in rural areas.Creating categories for the future by foraying into hair conditioner, liquid detergent, liquid dish wash, green tea, body wash, hand wash, and fabric conditioner segments is likely to help companies such as industan Unilever Ltd. The re-launch of certain categories of products such as fruit juice and dairy by ITC Ltd is likely to help the company in the near future. We are positive on the longterm fundamentals of the cigarette business, coupled with market share gains in the other FMCG business.

Source : Cogencis Information Services Ltd.