The FMCG sector bucked the trend as all other major sectoral indices dipped in the red in Monday’s session. Know why
The equity benchmark index Nifty 50 snapped its 4-day gaining streak on Monday, March 10, to close lower in the red territory at 22,460.30, down 92.20 points, or 0.41 per cent. All sectoral indices dipped into the red amid an overall negative sentiment in the market due to various global and domestic cues. However, the FMCG sector bucked the trend to extend its winning streak to four days.
The Nifty FMCG index inched up by 0.22 per cent, closing at 52,006.40. The index managed to stay afloat mainly due to a 1.96 per cent surge in heavyweight Hindustan Unilever (HUL), which holds a 20.24 per cent weightage in the index.
Supporting the gains, Nestle and ITC—accounting for 30.69 per cent and 8.16 per cent of the index, respectively—also closed in positive territory, with Nestle up 0.38 per cent and ITC advancing 0.22 per cent. Barring these three, the remaining 12 constituents of the index closed in the red.
Among the top losers in the index were Balrampur Chini Mills, which closed 2.38 per cent down, United Breweries, which ended 1.68 per cent lower, and Colgate Palmolive, which settled down 1.54 per cent.
Fernando Fernandez, the new CEO of FMCG giant Unilever, late Friday said that India will see an acceleration in sales growth in the second half of 2025, on the back of Reserve Bank’s interest rate cuts and the government’s fiscal stimulus measures. Fernandez was speaking during a fireside chat with Barclays in London, his first public comments since being elevated to the top post at the FMCG group.
He also highlighted quick commerce as a promising growth avenue, currently contributing 2 per cent to Unilever's Indian sales but projected to rise to 10-15 per cent in the coming years.
Fernandez also reaffirmed Unilever's annual growth guidance of 3-5 per cent, with India positioned as a key market.
These remarks likely lifted investor sentiment, driving HUL's shares higher.
HUL shares are currently trading with a discount of nearly 26 per cent over their 52-week high of Rs 3,035 per share, hit on September 23, 2024. On Monday, it closed at Rs 2,247.75 per share on the NSE.