Stocks of fast-moving consumer goods companies are seen rising in the week ahead as investors will continue to bet on safer sectors. Over the past week, while the broader indices lost nearly 1.4% in value, the BSE FMCG index gained 2% on increased investments. Investors will eye the Jul-Sep earnings of companies for stock-specific cues. ITC will declare its Jul-Sep earnings on Oct 19 and Dabur India will stock its quarterly results on Oct 26. Colgate Palmolive India and Marico will declare their earnings on Oct 29 and Nov 2, respectively. In the absence of any stock or industry-specific trigger in the near term, quarterly earnings will direct investors interested in the sector. Strong demand-side fundamentals coupled with price hikes are expected to aid sales volume and margin growth for FMCG companies in Jul-Sep. Buying or Accumulate rating for Stocks of FMCG companies due to the buoyant demand and price scenario, even though these companies' stocks are trading at multiple times their 2011-12 earnings per share.
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