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We expect stocks of most fast moving consumer goods companies to trade with a negative bias in the week ahead as they believe most companies will report a weak set of numbers in the upcoming results season. Most FMCG companies are likely to post a muted set of numbers, as on one hand they have to deal with a demand slowdown, and on the other hand they battled higher packing and raw material costs due to rupee depreciation. Earlier this week, Anglo-Dutch consumer goods giant Unilever Plc, downgraded its sales growth expectations to 3-3.5% for the Jul-Sep quarter on the back of a slowdown in emerging markets -- mainly India and Brazil. "The emerging market slow-down has accelerated as a result of significant currency weakening. Developed markets remain flat to down," said Unilever in a release. Emerging markets are of key importance to Unilever as they account for 55% of Unilever Plc's total business. We expected stocks of Unilever's Indian subsidiary Hindustan Unilever Ltd to trade within a range of 590-630 rupees in the week ahead. With earnings outlook worsening we believe the sector could de-rate selectively. Within the consumer sector, UBS downgraded Asian Paints Ltd to 'sell', Godrej Consumer Products Ltd to 'neutral' and upgraded Tata Global Beverages Ltd to 'buy'. Visit:
We expect stocks of most fast moving consumer goods companies to trade with a negative bias in the week ahead as they believe most companies will report a weak set of numbers in the upcoming results season. Most FMCG companies are likely to post a muted set of numbers, as on one hand they have to deal with a demand slowdown, and on the other hand they battled higher packing and raw material costs due to rupee depreciation. Earlier this week, Anglo-Dutch consumer goods giant Unilever Plc, downgraded its sales growth expectations to 3-3.5% for the Jul-Sep quarter on the back of a slowdown in emerging markets -- mainly India and Brazil. "The emerging market slow-down has accelerated as a result of significant currency weakening. Developed markets remain flat to down," said Unilever in a release. Emerging markets are of key importance to Unilever as they account for 55% of Unilever Plc's total business. We expected stocks of Unilever's Indian subsidiary Hindustan Unilever Ltd to trade within a range of 590-630 rupees in the week ahead. With earnings outlook worsening we believe the sector could de-rate selectively. Within the consumer sector, UBS downgraded Asian Paints Ltd to 'sell', Godrej Consumer Products Ltd to 'neutral' and upgraded Tata Global Beverages Ltd to 'buy'. Visit:
