FMCG outperforms Sensex in last 3 months

The investor sentiment towards FMCG stocks is upbeat as the sectoral index touched a 52-week high this week.

The BSE FMCG Index registered a growth of nearly 11 per cent in the past one month alone, compared with the Sensex's 4 per cent.

On a three-month horizon, the FMCG index rose from 2006.82 in November 2007 to 2394.83 in January 2008, whereas the Sensex went from 18907.6 in November 2007 to 20827.45 in January 2008.

The stock prices have been pushed up by the consistent growth shown by companies over the past few months, rather than high earnings expectations.

A relatively low base vis-a-vis the Sensex also pushed up the FMCG numbers.

Sameer Deshmukh, research analyst, IL&FS Investsmart, said, "The ITC scrip has a 50.63 per cent weightage on the BSE FMCG Index. Its share price rose by over 50 per cent in the last six months, from Rs 150 in August 2007 to a 52-week high at Rs 239.40 in January 2008. ITC's high weightage contributed to a rise in the FMCG index. Hindustan Unilever (HUL), which accounts for 21.37 per cent on the FMCG index, also touched its yearly high of Rs 244.10 this week."

The weightage of the ITC scrip on the Sensex is 4.16 and that of HUL is 1.75.