Fast Moving Consumer Goods (FMCG) companies are expected to perform in line with their performance based on monsoon, going forward. Growth in the FMCG sector has been stabilizing since the past couple of quarters after a broad-based moderation was witnessed in growth in the last couple of years.
There has been a sharp fall in the consumer price index (CPI) as well as an uptick in consumer confidence indices. Auto and durables are showing signs of improvement in the last few months. Corporate comments and dealer checks are also signalling revival in certain pockets of tier-I cities. However, waning stimulus, deceleration in farm and non-farm income and moderation in minimum support price growth are worrying factors for rural India.
Reading into the aforementioned signals, we find that growth deceleration seems to have bottomed out. Moreover, any revival from here on will be led by urban India, industry experts said. Pricemaker categories like oral care, malted foods, infant nutrition, noodles and cigarettes, among others, are preferred over other categories of products by urban consumers.
Among under-penetrated categories and urban revival plays, digestives, female hygiene, hair colours, biscuits, home insecticide and other foods are also preferred.stocksharesonline tradingequityinvestmentcurrencyforex
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