FMCG Stocks Outlook – 26 to 30.May.2014
(www.rupeedesk.in)
Stocks of fast-moving consumer goods companies are seen trading rangebound in the
week ahead as the market is likely to continue to focus on stocks that are likely to benefit
from a change in government regime. Most FMCG companies have come out with
average numbers, I do not see a runaway rally in consumer names until the monsoon
arrives. A normal monsoon may help to bring about the much needed demand revival.
Until then FMCG stocks will lie low.
While believe that it is only monsoon that could trigger the next rally, many industry
watchers are closely monitoring announcements from the new government on tax reform.
A clue on the implementation of the goods and service tax could provide a fundamental
fillip to the sector.A GST (Good and Service Tax) implementation plan by the new
government is a boost for all sectors of the economy, while it will benefit FMCG
companies, stock reaction will be muted at best.
