Nifty FMCG stays steady, index jumps over 195 pts as Varun Beverages, United Breweries, HUL drive

The FMCG index was among the top sectors that defied the broader volatile markets. The index has also limited losses on benchmarks of NSE and BSE.

Sep 21, 2021 12:09 IST India Infoline News Service

FMCG stocks are in focus as expectations of price hikes due to higher commodity prices going forward, takes round. However, on a broad basis, the FMCG index is trading on a higher note especially driven by heavyweight Hindustan Unilever along with Varun Beverages and United Breweries. The FMCG index was among the top sectors that defied the broader volatile markets. The index has also limited losses on benchmarks of NSE and BSE.

The Nifty FMCG index was trading between an intraday high and low of 41,452.30 and 41,108.20 respectively. At around 11.59 AM, the index was trading at 41,365.20 higher by 195.50 points or 0.47%.

Varun Beverages was the top gainer soaring by 5.5%, while Varun Beverages followed with a gain of nearly 2.6%. Index heavyweight HUL climbed more than 1%. ITC jumped nearly 0.6%.

Dabur India and PGHH surged by 0.3% each, while Colgate Palm-olive and Tata Consumer Products advanced marginally. Mcdowell traded flat.

On the downside, Marico was the top bear tumbling by 1.2% followed by Nestle India nosedived by 0.9%. Godrej Consumer Products and Britannia slipped marginally, while Jubilant Foodworks and Emami were on a muted note.

For the sector, Nestle's chief Suresh Narayanan expects commodity prices to continue to rise and result in a spectre of food inflation for manufactures. Narayanan during a virtual media roundtable told reporters that going forward, "2022 clearly looks to be promising to be a difficult year."

In the last six to eight months, Nestle has recorded an average price hike of 1-3% and it is expected that the company's products may get costlier in 2022. Similarly, can be expected from other FMCG players as well and will be keenly watched.

The sector is also expected to have better sales and demand in the upcoming festive season. 

Related Story

Open Free Demat Account (Rs699)