 "FMCG shares in focus; ITC, Marico hit 52-week high")
Shares of fast moving consumer goods (FMCG) companies are in focus with the Nifty FMCG index hitting 52-week high on Tuesday in intra-day trade on expectation of revival in rural economy due to above normal monsoon.
At 01:08 pm, Nifty FMCG index, the largest gainer among sectoral indices was up 2.2%, as compared to 0.16% gain in the Nifty 50 index.
At 01:08 pm, Nifty FMCG index, the largest gainer among sectoral indices was up 2.2%, as compared to 0.16% gain in the Nifty 50 index.
The FMCG index hit a 52-week high of 22,692 during intra-day trade, is 25 points away from its record high of 22,717 touched on February 28, 2015.
Among the individual stocks, Marico ( up 7% at Rs 306) and ITC (up 3.5% at Rs 260) hit their respective 52-week highs on the National Stock Exchange (NSE) in intra-day deal.
Hindustan Unilever, Colgate Palmolive (India), Godrej Industries, Jubilant FoodWorks, Procter & Gamble Hygiene and Health Care and Britannia Industries were up between 1%-3%.
The India Meteorological Department (IMD) on Monday retained its earlier forecast of ‘above normal’ rains during the four-month season of monsoon that started in June. The Met Office also said rains during August and September would be ‘above normal’. This could boost both kharif and rabi crops, which would not only push up economic growth but also pull down food inflation, the Business Standard report suggests. LINK
Amar Ambani, Head of Research at IIFL Wealth Management in Q1FY17 results preview said, the demand is likely to be muted in H1FY17 but could turn stronger in H2FY17, led by the likelihood of a good monsoon and benefits arising from the government’s schemes to boost rural growth.
The brokerage firm expects urban demand recovery to be hastened by the 7th Pay Commission award (arrears from January 2017) though two consecutive crop failures and structural changes in the rural economy will continue to weigh on rural demand for near term.