FMCG Stocks Outlook for the week – 23 to 27.06.2014
(www.rupeedesk.in)
(www.rupeedesk.in)
Stocks of fast moving consumer goods companies are seen
rangebound next week as a
weak monsoon has cast worries over farm output, and which is
seen affecting rural sector
demand--a key driver of FMCG stocks. The BSE FMCG Index
mirrored the prevailing
sentiment as it ended the week 0.39% lower against a 0.49%
fall in the
Sensex. According to the India Meteorological Department,
the monsoon rains so far till
Thursday were 42% below their normal. We expects most
companies in the consumer
space to be hit by the slowdown, but has a bullish view on
select stocks that could benefit
from likely price hikes.Bullish on ITC and Marico as it
expects both companies to hike prices of products over
the next few weeks. Also has a positive view on home grown
consumer major Jyothy
Laboratories. This week, Jubilant FoodWorks raised product
prices and announced a new
range of pizzas.Fundamental continue to be bullish on United
Spirits as demand in the
mid to premium spirits segment remains strong. Yesterday the
stock ended 3% higher
from the previous close. On Thursday, the stock had fallen
8% as Diageo's open offer for
the company ended.
