Nifty FMCG index up nearly 3% over the past month, but future hazy

Industry net sales have grown in double digits in just three of past 24 quarters

After underperforming the broader market for the better part of the previous year, fast-moving consumer goods (FMCG) companies like Hindustan Unilever, ITC, and Nestlé are outperforming the benchmark now. The Nifty FMCG Index has risen nearly three per cent over the past month, against a mere 0.9 per cent rise in the Nifty50 index.

The Nifty FMCG index ended the week with gains of 0.6 per cent against a 0.9 per cent decline in the benchmark Nifty50 index during the week.

Analysts attribute this outperformance to investors’ expectation of a better show by FMCG companies in the forthcoming quarters. “We are incrementally