HUL, Colgate, among others fuel Nifty FMCG up 2.8%; what’s driving today’s rally?

Fast moving consumer goods (FMCG) stocks were witnessing strong value buying interest and high trading volumes during the intraday stock market session on Friday, April 17, as shares like Colgate Palmolive India, Hindustan Unilever, Radico Khaitan, among others fuelled the sector benchmark index Nifty FMCG around 2.8%.

The Nifty FMCG index has recovered to its last week’s levels breaching a six-day high after trading lower earlier this week. The Nifty FMCG index hit an intraday high of 49,743.05 points during Friday’s trading session.

Investors were focused on picking up defensive stocks amid the market recovery to shield themselves from the dynamic global cues, in turn boosting the demand for consumer and FMCG stocks.

As of 12:29 pm, the Nifty FMCG index was trading 2.56% higher at 49,616.60 points on Friday, compared to 48,377.90 points at the previous stock market close, according to NSE data.

Experts said that the focus was also on the visible inflationary trends and predictions in the domestic market, which makes consumer stocks somewhat insulated from external pressures. However, these stocks still remain in the radar of the impact of higher input costs in the market due to the supply disruption in West Asia.

“In a volatile geopolitical environment with visible inflationary trends, prefer discretionary & retail (D&R) stocks where growth levers are in place for FY27 and are relatively insulated,” said the analysts at Morgan Stanley.

Media reports also suggest that Nifty FMCG index heavyweight, Hindustan Unilever, has raised its prices across its soap portfolio passing down the higher input costs of materials and packaging to the customers.

Top 5 gainers on Nifty FMCG

The stock has gained 7.3% to hit an intraday high of ₹2,121.90 during the trading session on Friday. Colgate Palmolive shares have risen 8.8% in one month and are up 8.4% over the last five market sessions.

Shares of Emami were up 7.75% in one month, and over 6% in the last five market sessions, according to the exchange data.

The FMCG stock is up 3.64% in one month, and 3.7% over the last five trading sessions, according to NSE data.

Shares of Radico Khaitan have risen nearly 16% in one month, and more than 13% in the last five market sessions on the Indian stock market.

Although United Spirits stock has flat returns in the last one month period, the FMCG stock is trading 2.6% higher over the last five market sessions, as per NSE data.