Market Ahead Podcast, Oct 21: Top factors that could guide markets today

After a 4 per cent dip in the stock post its September quarter numbers on Tuesday, Hindustan Unilever(HUL) continued to remain under pressure at the bourses on Wednesday.

HUL’s Q2 numbers had the Street worried on two counts

Christopher Wood, global head of equity strategy at Jefferies, too, had recently warned regarding rising inflation in his weekly note to investors, GREED & fear. “There is also the issue of souring input costs and whether corporates can pass them on”

While Brent crude oil prices have jumped nearly 95 per cent in the past one year to around $85 a barrel now, palm oil prices in the international market have gained 73 per cent during this period to MYR 5200 per tonne now.

Back home, the Nifty FMCG index has been a relative underperformer in 2021, rallying nearly 18 per cent as compared to peers such as Nifty Realty, Nifty IT that have gained up to 65 per cent during this period.

That said, analysts see the rise in costs for FMCG companies as a major headwind. G Chokkalingam, founder and chief investment officer at Equinomics Research explains why he is cautious on the sector.

So what should you do with FMCG stocks then? Analysts suggest buying the dips, but only after a meaningful correction

As regards the overall market sentiment, the short-term movement, experts say, will be guided by the corporate results.

Some of the prominent ones that are scheduled to announce their numbers on Thursday include Asian Paints, Lemon Tree Hotels, TVS Motors and MphasiS