www.rupeedesk.in
Stocks of fast-moving consumer goods companies are seen trading in a narrow range in the coming week, as investors and traders are likely to be focussed on high-beta stocks, with the finance minister presenting the interim budget for 2014-15 (Apr-Mar) on Monday. The result season has shown that most FMCG firms are witnessing signs of a slowdown in urban as well as rural areas, the vote on account is unlikely to have a major bearing on them and traders will focus on other sectors like infrastructure and capital goods. The stock of tobacco-major ITC could react negatively if the government increases taxes on cigarettes. However, a sudden fall in the stock price could be used for a trading opportunity, as we see the stock recovering from any such fall.
Most of the fundamental news and corporate action expected from the FMCG space has come though in the last few months, the sector is unlikely to see any large upside till the implementation of the goods and service tax at the macro level. We see stocks of most FMCG companies being rangebound in the week ahead.
Stocks of fast-moving consumer goods companies are seen trading in a narrow range in the coming week, as investors and traders are likely to be focussed on high-beta stocks, with the finance minister presenting the interim budget for 2014-15 (Apr-Mar) on Monday. The result season has shown that most FMCG firms are witnessing signs of a slowdown in urban as well as rural areas, the vote on account is unlikely to have a major bearing on them and traders will focus on other sectors like infrastructure and capital goods. The stock of tobacco-major ITC could react negatively if the government increases taxes on cigarettes. However, a sudden fall in the stock price could be used for a trading opportunity, as we see the stock recovering from any such fall.
Most of the fundamental news and corporate action expected from the FMCG space has come though in the last few months, the sector is unlikely to see any large upside till the implementation of the goods and service tax at the macro level. We see stocks of most FMCG companies being rangebound in the week ahead.
