Nifty FMCG, Nifty Consumer Durables top sectoral gainers as Kalyan Jewellers, Tata Consumer, Nestle India surge up to 10%

Kalyan Jewellers led the gains on the Nifty Consumer Durables index.

Consumption stocks rallied sharply in trade on January 31, ahead of the presentation of the Union Budget. The consumer staples index Nifty FMCG jumped two percent, while the durables index Nifty Consumer Durables was higher by around 2.3 percent as investors rushed to buy into the stocks.

Most consumption stocks have slipped over the past year because of sluggish demand; pushing earnings growth down to single digits. Post pandemic, the government has prioritised public spending and fiscal prudence and refrained from giving direct boost to consumption through tax breaks and other measures.

Several brokerages and market experts are pencilling some changes to income tax for the salaried population, which will boost the disposable cash in hand, leading to an uptick in consumption across the board. These could be by way of higher basic exemption limit or a higher standard deduction. If any of these measures are implemented, it could lead to a positive, second-order effect on consumer goods.

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On the Nifty FMCG index, the top gainers were Tata Consumer Products and Nestle India, both of which reported a better-than-expected earnings show for the quarter ended December 31, 2024.

Tata Consumer reported a 17 per cent YoY rise to Rs 4,444 crore in revenue in the quarter ending December 31, boosted by the India beverages and foods business, which contributes nearly 70 percent of its topline.

Nestle India reported a 6.2 per cent jump in quarterly standalone net profit at Rs 696 crore, as the packaged foods major sold more of its powdered and liquid beverages which includes popular coffee brand Nescafe.

ITC, Hindustan Unilever, Balrampur Chini Mills, and Colgate-Palmolive were among the top gainers on the Nifty FMCG index as well, rising between 1-3 percent each.

On the Consumer Durables index, Kalyan Jewellers led the gains, jumping 10 percent after the gold jewellery player reported a 21 percent rise in net profit for Q3. Titan, Century Ply, Bata India also reported gains between 2 to 4 percent each.

Kalyan Jewellers reported a strong performance for Q3FY25, with consolidated net profit rising 21 percent year-on-year to Rs 218.82 crore, up from Rs 180.61 crore in the same quarter last year. Revenue surged 39.5 percent to Rs 7,286.88 crore, compared to Rs 5,223.08 crore in Q3FY24.

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