FMCG Stocks Outlook for the week – 21 to 25.09.2015
(Rangebound on lack
of new triggers, F&O expiry)
( www.rupeedesk.in )
Stocks of fast moving consumer goods companies are likely to trade rangebound next week, due to lack of fresh triggers and expiry of derivatives contracts.
While
fundamentals for FMCG sector are mixed, the trend on technical charts look
weak, with index-heavyweights ITC and Hindustan Unilever seen remaining under
pressure. The CNX FMCG Index could fall to the 19000-level in the near-term.
Positive
on Dabur India in the FMCG pack, as it is likely to break out from its
consolidation and move higher. As far as fundamentals are concerned, FMCG companies
may continue to benefit from soft raw material prices, but demand has not
picked up much, which will limit revenue growth.
Yesterday,
the government raised import duty on crude and refined edible oils by 500 basis
points each. Import duty on crude edible oil is now at 12.5% and that on
refined edible oil is 20%.
