From Hindustan Unilever to Britannia, FMCG stock rally skates on thin ice

Sector could run out of steam, given sharp slowdown in the industry revenue growth

Leading consumer goods companies, including Hindustan Unilever, ITC, Nestlé, Britannia Industries, and Dabur, have exhibited remarkable performance on the stock market in recent months. Over the past year, the National Stock Exchange Nifty FMCG Index, which tracks the market capitalisation of the top 15 companies in the fast-moving consumer goods (FMCG) sector, has surged by 17.3 per cent. In contrast, the Nifty50, a broader market index, has witnessed an 8.8 per cent increase during the same period.

The FMCG stocks have also been rally leaders in the current calendar year. The Nifty FMCG Index is up 16.3 per cent since