Nifty FMCG index has reached a record high. Experts recommend buying in these stocks

According to Share MarketExperts say FMCG companies are expected to benefit from favorable volumes and margin conditions, owing to the fall in commodity prices, especially palm oil prices and the coming long festive season in India. He said the index could go up to 43,500 to 44,000 as these triggers are going to be present for short to medium term for FMCG stocks. He said that the shares of ITC and HUL constitute about 55 per cent of the overall strength of the index and both these stocks are bullish. He added that these two FMCG stocks will give a further boost to the Nifty FMCG index in the next 2-3 months.

speaking on the cause of Nifty FMCG Index Rising to a record high, Anuj Gupta, Vice President – Research, IIFL Securities said, “Nifty FMCG Index has moved higher on the back of easing of commodity prices, especially palm oil prices and the fast approaching long festive season in India. Owing to the season. Both these create a strong combination of favorable volumes and margins for companies dealing in FMCG products. FMCG stocks and Nifty FMCG index are expected to continue this uptrend as the festive season continues for the next two to three months. Going to do.

Sumeet Bagadiya, Executive Director, Choice Broking said on which chart pattern indicates Nifty FMCG Index, “Nifty FMCG Index has moved to record high and the rally is expected to continue and will be 43,500 more in the short term. 44,000 levels. Positional investors are advised to keep 42,500 as strong support for the index and any fall from current levels should be viewed as a buying opportunity.”

Sumeet Bagdia of Choice Broking said that ITC shares and HUL shares constitute around 55 per cent of the strength of Nifty FMCG index (ITC 29.18 per cent while HUL 25.91 per cent) and both these stocks are in an uptrend. He said that ITC shares may rise further 330 each level in the short term while HUL share price is expected to go up 2800 each level in the short term. He advised positional investors to buy ITC and HUL shares for the given target as these stocks would continue to rise in the Nifty FMCG index.

In year-on-year (YTD) time, the Nifty FMCG index has gained nearly 15 per cent, while major benchmark indices Nifty 50 and BSE Sensex have gained over 1.65 per cent in the period. So, Nifty FMCG Index has generated alpha return in YTD time.

Disclaimer: The views and recommendations given above are those of individual analysts or broking companies and not of Mint.

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