FMCG Stocks Outlook for the Week – 20 to 24.06.2016
Range-bound; delayed
monsoon likely to weigh
( www.rupeedesk.in )
Stocks of fast-moving
consumer goods companies are expected to trade range-bound next week, in tandem with the trend in
the broader market, but the delay in the onset of the monsoon will continue to weigh on the stocks.
Share indices are likely to remain choppy, as investors will remain cautious ahead of a referendum on
the UK's membership in the European Union, scheduled for Thursday. The India Meteorological
Department has said that rainfall was weak in the first fortnight of the
Jul-Sep monsoon season, with rain
during Jun 1-16 at 25% below the normal, at 50.3 mm. Consumer goods stocks are sensitive to
rainfall updates, as a good monsoon is crucial for a pick-up in rural demand. A surge in raw material
prices and higher food inflation are also expected to have a negative impact on FMCG stocks. Yesterday,
the Nifty FMCG index closed at 21044.60. Stocks of Godrej Consumer Products and Dabur India
are seen trading on a positive note. Britannia Industries is expected to continue trading on a
weak note in the coming week.
