The shares of FMCG companies recorded notable losses on June 12, pushing the Nifty FMCG index down nearly 1.3 percent to hover around 55,110 in the afternoon. The index has now extended losses for the second consecutive day, after a strong five-day rally.
Dabur shares were the top loser on the index, dropping nearly 3 percent to trade at Rs 473 apiece. Tata Consumer Products and Nestle shares fell over 2 percent each, while Hindustan Unilever (HUL), Godrej Consumer Products and Emami shares fell over 1.6 percent each.
Marico and ITC shares fell over 1 percent, while Britannia Industries, Colgate Palmolive, United Spirits, Patanjali Foods and United Breweries shares were trading in the red with marginal losses.
The fall in the defensive stocks comes amid an overall downturn in the market, with benchmark indices recording sharp fall. Sensex plunged 713 points to hover around 81,773, while Nifty 50 was down nearly 0.9 percent to stand at 24,919.
Hardik Matalia, Derivative analyst at Choice Broking, called the fall in FMCG stocks a result of mild profit booking and sectoral rotation. “Given the prevailing global uncertainties and event-driven risks, traders are advised to maintain a disciplined approach with strict risk management. Adopting tight stop-losses and exercising caution is prudent in the current environment marked by elevated market volatility,” he said.
Also read: Nifty Pharma sole sectoral gainer as investors await clarity on Trump tariffs
Franklin Templeton India Mutual Fund in its latest market outlook report said, “Equity investing requires investors to be prepared to invest in times of uncertainty. Investors who stay disciplined and patient are likely to come out ahead in the long run. Given the current global uncertainties, adopting a systematic approach with a diversified investment strategy would be prudent. Spreading exposure across various market capitalizations and sectors can help mitigate risks while uncovering potential opportunities. Hybrid funds may offer optimal risk-adjusted returns during such volatile periods."
Disclaimer: The views and investment tips expressed by experts on Moneycontrol are their own and not those of the website or its management. Moneycontrol advises users to check with certified experts before taking any investment decisions.
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