FMCG Stocks Outlook the week – 02 to 06.01.2017
FMCG Stocks Outlook the week – 02 to 06.01.2017
( www.rupeedesk.in )
The shares of fast moving consumer goods companies are likely to bounce back after weeks of correction, as companies have slowly begun recovering from the impact of demonetization. The way ITC Ltd and Hindustan Unilever Ltd has recovered last week after falling for most of last month is promising. FMCG companies had been hit by the withdrawal of high-value currency notes, as sales had slowed in most parts of
the country. Companies such as HUL have issued statements saying that the cash curbs could hit their performance in the near term. With the cash curbs expected to be eased, the situation had improved in many areas, as companies have made efforts to normalize sales, and this was being reflected on the ground. The cigarette price hike undertaken by ITC had also helped the case. ITC Ltd, India's largest cigarette maker, raised the prices of packs of ten 74-mm Navy Cut cigarettes, as well as similar packs of 69-mm Gold Flake (regular) by 14.1% to 89 rupees. The shares of ITC gained following the news, hitting their highest levels in a month earlier. This week, the stock has gained 7.5%. Earlier in the week, the stock had rallied on market speculation that the tobacco industry might not see a steep increase in excise duty in the coming Union Budget. The two news reports have supported bullish sentiment for all cigarette companies and ITC is
sure to gain more in the coming days.
Free Intraday Tips : Join Our Whatsapp No : 9841986753
Free Commodity Tips : Join our Whatsapp No : 9094047040
FMCG Stocks Outlook the week – 02 to 06.01.2017
( www.rupeedesk.in )
The shares of fast moving consumer goods companies are likely to bounce back after weeks of correction, as companies have slowly begun recovering from the impact of demonetization. The way ITC Ltd and Hindustan Unilever Ltd has recovered last week after falling for most of last month is promising. FMCG companies had been hit by the withdrawal of high-value currency notes, as sales had slowed in most parts of
the country. Companies such as HUL have issued statements saying that the cash curbs could hit their performance in the near term. With the cash curbs expected to be eased, the situation had improved in many areas, as companies have made efforts to normalize sales, and this was being reflected on the ground. The cigarette price hike undertaken by ITC had also helped the case. ITC Ltd, India's largest cigarette maker, raised the prices of packs of ten 74-mm Navy Cut cigarettes, as well as similar packs of 69-mm Gold Flake (regular) by 14.1% to 89 rupees. The shares of ITC gained following the news, hitting their highest levels in a month earlier. This week, the stock has gained 7.5%. Earlier in the week, the stock had rallied on market speculation that the tobacco industry might not see a steep increase in excise duty in the coming Union Budget. The two news reports have supported bullish sentiment for all cigarette companies and ITC is
sure to gain more in the coming days.
