Stocks of fast moving consumer goods companies are seen outperforming the broader market this week on expectations of good earnings in the quarter ended Sep 30. Strong demand-side fundamentals and price hikes are expected to aid sales volume and margin growth for FMCG companies in Jul-Sep. In the absence of any other major triggers, investors will eye the quarterly results of companies for stock-specific cues.
While Dabur India will detail its quarterly results on Oct 26, Colgate Palmolive India and Marico will declare their earnings on Oct 29 and Nov 2, respectively.
On Friday, sector-heavyweight ITC Ltd, India's largest cigarette maker, declared higher-than-expected Jul-Sep earnings. The company registered a 21.3% on year growth in net profit at 18.36 bln rupees in Jul-Sep.
ITC's net sales for the period rose 19.6% on year to 71.46 bln rupees. Shares of ITC extended intra-day gains after the release of the results, rising more than 2% from the previous close to a lifetime high of 299 rupees. The stock ended 2% higher at 297.50 rupees on the National Stock Exchange on Friday.
Last week, the BSE FMCG index gained 2.6% in value, while broader indices remained flat. The BSE FMCG index is seen continuing its uptrend this week.
