FMCG Stocks Outlook for the week – 04 to 08.04.2016
Seen
in range ahead of Jan-Mar earnings
( www.rupeedesk.in )
Stocks
of fast-moving consumer goods companies are expected to trade in a range ahead
of the Jan-
Mar
earnings, as there are no real triggers for the stocks. However, stocks of ITC
Ltd are expected to
trade
positive following the company's decision to hike prices of its cigarettes. In
the week gone by,
the
cigarette major's stocks have risen 3.6%. Analysts said investors will closely
watch the rise in raw
material
costs as they have risen during the quarter. FMCG companies in the last few
quarters have
been
able to post healthy margins due to lower commodity costs.
Companies
like Hindustan Unilever Ltd and Marico Ltd had passed on the fall in raw
material costs to the consumer in the form of discounts and price cuts.
However, we expect FMCG stocks to trade
bullish next week. Nifty FMCG index has been showing tremendous strength
for last five week and in fact it outperformed the benchmark Nifty index in the
passing week as well. The report also said that in the short-to-medium term
traders can concentrate on Godrej Consumer Products Ltd, Hindustan Unilever,
and ITC