Priyanka Tiwari
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On April 9, the FMCG sector outperformed the broader Indian markets, with the Nifty FMCG index climbing nearly 2%, making it the best-performing sector of the day. This uptrend was primarily driven by index heavyweights Nestle India, ITC, and Hindustan Unilever (HUL), despite broader market weakness.
Key FMCG Stocks on the Rise
Top gainers within the FMCG pack included:
Nestle India and Godrej Consumer Products: Up by nearly 3%.
Emami, HUL, and Colgate-Palmolive: Also saw notable gains.
Britannia Industries, Marico, United Spirits, ITC, Dabur, and Tata Consumer: Gained around 1%.
Varun Beverages and United Breweries: Traded in the green with modest gains.
However, Patanjali Foods and Radico Khaitan bucked the trend, recording marginal declines.
Market Volatility and Defensive Appeal of FMCG
The current rally in FMCG is attributed to the sector's defensive nature and strong domestic demand base, making it attractive during periods of economic and market volatility. The uncertainty is driven by recession fears linked to the US-China trade war, exacerbated by President Trump’s recent tariff escalation.
RBI’s Policy Decisions Add Positive Momentum
On the same day, RBI Governor Sanjay Malhotra announced a 25 basis point cut in the repo rate, bringing it down to 6%, while lowering the inflation forecast for FY26 to 4%. These monetary easing steps aim to stimulate domestic growth and improve liquidity.
Expert Opinions on Market Impact
Narinder Wadhwa, CEO of SKI Capital, noted that while the rate cut may pressure the rupee, sectors like FMCG are likely to benefit from their resilience and domestic focus during global turbulence.
Sankar Chakraborti, MD of Acuité Ratings, emphasized that the RBI's move to support domestic consumption and MSMEs amid external trade shocks is a strategic attempt to sustain growth momentum.
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