tocks of fast moving consumer goods companies are seen moving in the inverse direction of the broader indices in the week ahead. If the broader indices gain in value in the week ahead, there would be profit booking in FMCG stocks and so they will lose value, as investors move their money to other sectors.
However, if broader indices continue to remain weak, FMCG stocks will gain further as investors will flock to the safety of this sector. Over the past few months, stocks of big FMCG companies such as ITC Ltd have seen sustained buying by foreign institutional investors, while domestic institutional investors have bought stocks of mid-cap FMCG companies such as Marico Ltd. Over the past week, the BSE's FMCG index gained 1.8%, even as broader indices--The BSE's Sensex and the National Stock Exchange's Nifty--lost around 2.4% each. Marico stocks gained 2.5% this week as investors bought into the stock as a fall in key raw material copra's prices raised hopes of better profit margin in the ongoing quarter. Stocks of Colgate Palmolive India Ltd and ITC also saw sustained buying through this week. By RUPEE DESK [email protected] -- You received this message because you are subscribed to the Google Groups "Kences1- Rupeedesk" group. To post to this group, send email to [email protected]. To unsubscribe from this group, send email to [email protected]. For more options, visit this group at http://groups.google.com/group/kences1?hl=en.
