FMCG Stocks Outlook for the week – 11 to 15.04.2016
(Seen
trading in range; Jan-Mar earnings eyed)
( www.rupeedesk.in )
Shares
of fast moving consumer goods manufacturers are seen trading in a tight range with
a negative bias next week, and the market will wait for companies' Jan-Mar earnings
to take cues. Companies such as Hindustan Unilever are expected to trade with a
negative bias, given the drought-like conditions in large parts of the country
that is expected to hurt rural demand.
There
is rising competition from home-grown FMCG Company Patanjali, too, which
offers
more bang for the buck, and has generated consumer traction, particularly in
north
India.
FMCG
companies have had a good run over the past year, as they have benefited from
low
input costs, which have aided margin expansion. Raw material costs are also
likely
to firm up in the near
future, especially for agricultural inputs.