www.rupeedesk.in
Stocks of major fast-moving consumer goods companies are expected to underperform the market next week because of stretched valuations, and as investors are now shifting their focus to sectors such as banking, information technology, real estate, and metals. There is room for further downward correction in stocks of FMCG companies as their valuations are rather high currently. Benchmark stock indices are likely to gain in the next few sessions because of recent regulatory and economic reforms and positive news flows on the global front.
The BSE's FMCG index is expected to continue underperforming benchmark indices next week. However, the sector's fundamentals are strong, with demand for FMCG products remaining firm. Also, hike in product prices is expected to improve the operating margins of FMCG companies.
Stocks of major fast-moving consumer goods companies are expected to underperform the market next week because of stretched valuations, and as investors are now shifting their focus to sectors such as banking, information technology, real estate, and metals. There is room for further downward correction in stocks of FMCG companies as their valuations are rather high currently. Benchmark stock indices are likely to gain in the next few sessions because of recent regulatory and economic reforms and positive news flows on the global front.
The BSE's FMCG index is expected to continue underperforming benchmark indices next week. However, the sector's fundamentals are strong, with demand for FMCG products remaining firm. Also, hike in product prices is expected to improve the operating margins of FMCG companies.
