FMCG
Stocks Outlook for the week (09 - 13.07.2012)
Stocks of fast moving consumer
goods companies are expected to move in a narrow range with a negative bias
next week, as sluggishness in the broader markets may reflect in these
stocks. FMCG stocks were outperforming broader indices till a week back
owing to their defensive nature, but lost steam over the past five
sessions. However, investors are positive on FMCG companies in the long
term as their margins are expected to improve owing to softening in the prices
of some key commodities such as wheat, barley, sugar and milk. Over the
past two months, prices of key inputs such as copra, soda ash, palm oil,
safflower oil and sunflower oil have fallen. Companies such as GSK
Consumer Health Care Ltd, Britannia Industries Ltd, Emami Ltd, Marico Ltd and
Hindustan Unilever Ltd are seen benefiting from the downtrend in prices of raw
materials.
