At around 12.40 PM, the Nifty FMCG was trading at 36,295.40 up by 8.25 points or 0.02%. The index has recorded a new lifetime high of 36,456.15.
United Breweries was the top gainer soaring by 4.5% followed by HUL advancing by 1%. Both the stock has touched a new all-time high with UBL at Rs1,455 per piece and HUL at Rs2,522.95 per piece in the early deals.
HUL stock has been moving upward due to various factors such as volatility in the markets and also optimistic stance from many brokerages in the last week. Also, HUL is seen to growth triggers in Q1 and quarters going forward.
Mcdowell and Britannia gained marginally. Mcdowell has also touched a new 52-week high of Rs680.40 per piece.
Emami was the top underperformer plunging by 2.3% followed by Procter & Gamble Hygiene and Health Care slumped by 1.6%. Varun Beverages, Jubilant Foodworks and Colgate Palmolive dived more than 1% each.
Nestle slipped by 0.8%, while Godrej Consumer and Tata Consumer dipped by 0.7% each.
Marico and Dabur were marginally down. In the early deals, Marico had clocked a new 52-week high of Rs527.25 per piece. ITC traded flat.
The good start of the monsoon has increased hopes for speedy rural recovery. FMCG is among the sectors that tend to benefit from a normal monsoon. In 2021, the monsoon is expected to be normal for the third straight year which indicates rural recovery from the Covid-19 pandemic. The current Kharif season has already picked up momentum in the ongoing season.
The latest monthly Refinitiv-Ipsos Primary Consumer Sentiment Index (PCSI) showed that India's consumer confidence among urban Indians have recovered mildly in June 2021 with a slight upside of 1.4 percentage points against the previous month. The consumer sentiment plummeted 6.3 percentage points in May 2021 due to resurgence in the Coronavirus pandemic.