FMCG Stocks Outlook for the week – 04 to 08.07.2016
(Seen up on good monsoon, positive broader markets)
( www.rupeedesk.in )
The Stock of fast moving consumer goods companies are expected to
continue their positive
movement next week due to good monsoon rains and a likely uptrend
in broader markets. A pick-up in the monsoon through the past few days will
lead to positive sentiment in FMCG stocks. The progress of rains has a bearing
on the FMCG sector, as demand for consumer goods in rural regions is Dependent
on the monsoon.
The broader markets are expected to trade positive on the back of
good rains and a recovery in global
markets. Also, this week, the Union Cabinet approved the Model
Shops and Establishment Bill, which allows shops and business establishments
with at least 10 workers to be open 24x7, and 365 days a year. This is likely
to result in a rise in consumer stocks.
The Cabinet also approved a pay hike for government staff,
effective Jan 1.The implementation of the Seventh Pay Commission's
recommendations on salaries and pension of central government staff will also
lead to a rise in consumption, which will augur well for FMCG companies, as
demand is expected to rise.
