FMCG Stocks Outlook for the Week – 09 to 13.02.2015
( www.rupeedesk.in )
Stocks
of fast moving consumer goods companies are likely to trade with a positive
bias next
week
as investors may switch to defensive stocks in the wake of choppy broader
markets. Nifty and Sensex may be volatile next week amid various data releases,
outcome of Delhi Assembly elections on Tuesday, and developments in Greece.
Investors may avoid high-beta counters in leveraged positions and prefer
information technology and FMCG stocks given that overall sentiment in markets
has been weak. Market participants will eye data on India's gross domestic product,
inflation, and manufacturing output due next week.
Among
the FMCG heavyweights, ITC may continue its uptrend, Hindustan Unilever may
remain under pressure as valuations for the stock are expensive after the run
up in January. Dabur India and Godrej Consumer Products are seen maintaining
their uptrend, while most other stocks in the sector will trade range bound.
Godrej Consumer gained significantly this week on the back of strong results
for the Oct-Dec quarter. Procter & Gamble Hygiene and Gillette India will
release their Oct-Dec earnings on Thursday, which will be eyed by investors.
Fundamentally, decline in raw material prices and optimism of rise in consumer
demand are likely to support the FMCG companies in the medium-to-long term.
