Shares of fast moving consumer goods (FMCG) companies were trading higher by up to 3% in an otherwise subdued market in noon deals on the bourses.
Hindustan Unilever (HUL), ITC, Dabur India, Nestle India, Godrej Consumer Products, Britannia Industries and Colgate-Palmolive (India) are up 1-3% on BSE.
The BSE S&P BSE FMCG index and NSE CNX FMCG index were up 1% each have hits their respective record high during intra-day deal today. The benchmark indices were trading in red at 1320 hours.
Analyst at J.P. Morgan remain optimistic on the medium term growth outlook for the Indian staples sector as fundamental drivers - low penetration, low frequency of consumption, rising aspirational/income levels and availability of better products/formats - are all intact.
While recent quarters have been fairly challenging, we believe we are probably closer to the bottom and expect demand to revive gradually over 2H and FY16. With rising confidence in GDP growth revival in the coming quarters, we expect staples demand to benefit too, said analyst in a research report dated 10 September 2014.
Among the individual stocks, Nestle India has rallied 3% to Rs 6,100 on BSE. HUL trading at 2.2% at Rs 760 after hitting a record high of Rs 763 in intra-day trade. ITC and Dabur India were up 1.5% each at Rs 376 and Rs 224 respectively.
