FMCG Stocks Outlook for the week (25-29.06.2012)

[rupeedesk]

FMCG Stocks Outlook for the week (25-29.06.2012)

Stocks of fast moving consumer goods companies will continue to be rangebound next week but with a positive bias, as investors remain invested in these shares and buying is seen moderate to low. Their defensive nature has lured buyers to take positions in FMCG stocks, as the market still looks a tad uncertain. 

This week, stocks of Hindustan Unilever Ltd, ITC Ltd, Marico Ltd gained in value, with the exception of Colgate Palmolive India Ltd. A strong demand outlook will likely keep the sector attractive for investors over the medium term.

On Jun 19, ITC hiked prices of select biscuits sold under its Sunfeast brand by 10-18%. Demand for FMCG products will also depend on the advance of monsoon. The Indian Meteorological Department has forecast rainfall to be 98% of the average in July and 96% in August. A good monsoon helps FMCG companies in two ways--by aiding agricultural output and raising rural incomes, and by reducing prices of agricultural raw materials.