OTHER GROUP COMPANIES
market

Stock prices of HUL, Britannia, and Godrej Consumers rise as palm oil prices go down

Over the past few weeks, the price of crude palm oil futures on international marketplaces has plummeted by more than 35%.

July 06, 2022 11:11 IST | India Infoline News Service
Over the past few weeks, the price of crude palm oil futures on international marketplaces has plummeted by more than 35%.

On July 6, as the price of crude palm oil fell further, shares of Hindustan Unilever, Godrej Consumer Products, and Britannia Industries all saw an increase in their prices.

The resumption of Indonesian exports, as well as worries about the state of the world's demand, have caused a more than 35% decline in the price of crude palm oil futures on international exchanges in recent weeks.

Palm oil prices are currently trading close to their six-month lows as a result of massive inventories in the Indonesian market and delayed imports from important users like India and Pakistan.

Since crude palm oil is a crucial raw ingredient, the steep drop in price is good news for home manufacturers of fast-moving consumer items.

Most FMCG stocks experienced a sharp decline earlier in the year as a result of an increase in palm oil prices following the Russia-Ukraine war and Indonesia's impromptu export ban. Investors feared that the input price inflation that has been affecting these companies over the past year would worsen.

Analysts predict that the impact of decreased palm oil prices, however, will not be felt until the third quarter of the current fiscal year because the first two quarters will be disproportionately affected by higher input costs.

OPEN A DEMAT ACCOUNT & Get
FREE Benefits Worth 5,000

FEATURED ARTICLE

BLOGS

Open Demat Account

  • 0

    Per Order for ETF & Mutual Funds Brokerage

  • 20

    Per Order for Delivery, Intraday, F&O, Currency & Commodity