FMCGs extend fall on RBI's warning of higher inflation; more pain on cards?

The recent Reserve Bank of India (RBI) monetary policy raised concerns on the inflation trajectory, adjusting FY24 from 5.10 per cent to 5.4 per cent. Meanwhile, CPI (Consumer Price Index) inflation stood at 7.44 per cent, exceeding the upper tolerance limit of RBI set at 6 per cent.

The Nifty FMCG ((Fast Moving Consumer Goods), which has climbed since the start of the current year, striking fresh all-time high, has begun displaying weakness. 

Barring Varun Beverages that reached a new all-time high and Colgate Palmolive (India), other FMCG stocks trade fragile.

Here’s the technical outlook of FMCg