FMCG Stocks Outlook for the week – 23 to 28.02.2015
( www.rupeedesk.in )
Stocks
of fast moving consumer goods companies may trade on a positive note next week
as
defensives
are likely to gain amid volatility ahead of the Union Budget for 2015-16
(Apr-Mar) and expiry of the equity futures and options contracts.
The
Budget will be announced on Feb 28, while the derivatives contracts will expire
on
Thursday.
FMCG, IT and pharma stocks will generally be considered as safe havens.
The
bias for ITC is also positive, but investors might be cautious on the stock
next week as
government
might announce certain fiscal measures on cigarette in the Budget.
Moreover,
ITC may witness profit booking after the near 5% rise this week. Among the
other
companies
in the sector, we expect Godrej Consumer Products, Marico and Colgate Palmolive
to trade firm.
The
focus will remain on tax measures and economic growth outlook that will be
announced in the Budget. In the longer run too, the sector is likely to benefit
from lower commodity prices and rebound in consumer demand.
