The Nifty FMCG index touched a new high of 59,587 points on 11 July & extended its winning rally for the fifth consecutive trading session. During this session, it gained 0.40%, accumulating a 4.3% increase over the past five sessions.

This index is nearing the 60,000 level, starting its bullish trend in June. The index concluded the month with a 5% gain and continued its rally into July with a 5% return in less than two weeks.

In this month, ITC shares surged by almost 8%, while Marico saw a 5% increase. Britannia Industries, Godrej Consumer Products, Colgate-Palmolive (India), and HUL also recorded gains ranging from 5% to 6% over the same period.

These FMCG stocks surged due to strong rural demand. The major FMCG players reported positive quarterly updates for the June quarter. The new government’s focus on the overall economic development of rural India supported this rally. Favorable monsoon forecasts boosted expectations for rural recovery. Lower input prices and anticipated rural reforms in the upcoming Union Budget also contributed.

Demand for FMCG products strengthened, especially in the summer portfolio, showing gradual improvement throughout the quarter.

Leading FMCG companies like Dabur, Marico, and Adani Wilmar reported improved demand trends in their latest quarterly updates from April to June.

Dabur expects mid to high-single-digit growth in consolidated revenue, driven by mid-single-digit volume growth in the domestic market. Marico achieved high single-digit revenue growth in the June quarter, with a slight sequential improvement in underlying volume growth in its domestic business. Adani Wilmar, renowned for its edible oils and Fortune brand food products, saw a 13% rise in overall volume in the June quarter.

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