The shares of few frontline fast-moving consumer goods (FMCG) companies recovered sharply from their respective day's lows, as stock markets rebounded from strong losses on February 12.
The Nifty FMCG index recovered to trade in the green at 53,797.25, as seen at 12.38 pm.
Shares of Varun Beverages were the top gainer on the index, trading nearly 3 percent higher at Rs 533.45 apiece. The stock has effectively broken its five-day losing streak. The company on February 10 reported a 36 percent jump in net profit at Rs 196 crore for the quarter ended December 31, 2024, driven by volume growth and improved margins.
United Breweries, Tata Consumer and Dabur shares followed, recording over 1.5 percent gains. Stocks which traded in the green with minor gains included United Spirits, Hindustan Unilever, Britannia Industries, Nestle and ITC.
While several stocks rebounded, few of them still traded in deep red. Radico Khaitan stock was the top loser on the index, trading 1.42 percent lower at Rs 2,176.85 apiece. It was followed by P&G Hygiene whose shares were trading over 1 percent lower at Rs 13,781.5 apiece. The company on February 11 had reported a net profit of Rs 268.59 crore, marking a year-on-year increase of 17 percent.
Balram Chini, Marico, Colgate-Palmolive traded in the red with minor losses.
The FMCG stocks have seen significant downturn since their initial euphoria after Budget 2025-2026. Finance Minister Nirmala Sitharaman on February 1 announced changes to the existing income tax slabs under the new tax regime, effectively hiking tax rebate limit to Rs 12.75 lakh per annum. Immediately after the Budget was released, several market experts noted that the additional money accumulating in the hands of the taxpayers due to the change will effectively boost consumption. Consumption stocks had surged on February 1 after the announcement.
However, as the budget boost fizzled out, the stocks sharply fell. The Nifty FMCG index closed in the red for seven consecutive sessions after February 1.
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