FMCG Stocks Outlook for the week (11-15.06.2012)
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RUPEE DESK - FMCG Stocks Outlook for the week (11-15.06.2012)
Stocks of fast moving consumer goods companies are seen
remaining in a range during the week ahead on weak investor activity at these
counters. Investors have bought these shares and are sticking to their
positions. The high value of these stocks is prohibiting entry of new
money here. Sound business prospects for FMCG companies, in terms of volume
growth outlook and stable margin projections, are making investors stay put in
the category.
In a major development for the sector, the government has deferred implementation of new packaging norms for FMCG companies by four months to Nov 1. The norms have also exempt value-based pack priced between 1-10 rupees. Among others, the move is expected to benefit Britannia Industries Ltd and ITC Ltd as a large chunk of their packaged food volumes come from sale of 1-10 rupee packs. Market see the value of FMCG shares remaining at or around their current levels in the near-term, as the broad market has few triggers.
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