FMCG Stocks Outlook For The Week - 30.01.2017 To 03.02.2017
FMCG Stocks Outlook For The Week - 30.01.2017 To 03.02.2017
( www.rupeedesk.in )
Stocks of companies of fast moving consumer goods may trade in line with the broader markets ahead of the Union Budget for the next financial year due Wednesday. The tax rate cuts sought by the industry are unlikely to happen, but could be positive movement if the government comes up with fresh scheme to boost rural income. The FMCG sector is likely to benefit from the Goods and Services Tax regime if the new indirect tax regime ensures that credits do not stick to the business, and are passed on in the value chain. Among bellwether stocks, Hindustan Unilever Ltd is seen outpacing the market growth in short term due to its pricing power, extensive distribution network, and product innovation. HUL has taken cognizance of the increasing potential in the natural space and has described it as a mega trend. Launch of the Ayush master brand in the mass segment across categories like toothpaste, face wash, shampoo, conditioner etc.will propel growth. ITC Ltd, which reported a net profit of 26.47 bln rupees in Oct-Dec, up nearly 6% on year, is likely to touch 284-rupee levels on the National Stock Exchange.
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FMCG Stocks Outlook For The Week - 30.01.2017 To 03.02.2017
( www.rupeedesk.in )
Stocks of companies of fast moving consumer goods may trade in line with the broader markets ahead of the Union Budget for the next financial year due Wednesday. The tax rate cuts sought by the industry are unlikely to happen, but could be positive movement if the government comes up with fresh scheme to boost rural income. The FMCG sector is likely to benefit from the Goods and Services Tax regime if the new indirect tax regime ensures that credits do not stick to the business, and are passed on in the value chain. Among bellwether stocks, Hindustan Unilever Ltd is seen outpacing the market growth in short term due to its pricing power, extensive distribution network, and product innovation. HUL has taken cognizance of the increasing potential in the natural space and has described it as a mega trend. Launch of the Ayush master brand in the mass segment across categories like toothpaste, face wash, shampoo, conditioner etc.will propel growth. ITC Ltd, which reported a net profit of 26.47 bln rupees in Oct-Dec, up nearly 6% on year, is likely to touch 284-rupee levels on the National Stock Exchange.
