Stock market today: Despite the stock market’s volatility post-Lok Sabha Election 2024 results, the Nifty FMCG Index has demonstrated remarkable resilience. It surged around 5 percent, reaching the 5,800 mark during the early morning session, and logged a one percent rise on Tuesday, even after the stock market crash following the disappointing election results. This performance underscores the continued interest in FMCG majors like Dabur, Marico, Britannia, COLPAL, Bikaji, etc., despite the volatility on Dalal Street. Notably, shares of Marico, Britannia, COLPAL, and Bikaji Foods hit a new lifetime high, and Dabur’s share price reached a new 52-week high within minutes of the opening bell.
Triggers for FMCG stocks
Delving into the reasons that are fueling FMCG stocks, Avinash Gorakshkar, Head of Research at Profitmart Securities, provides a valuable analysis. He states, “Generally, we see bulls’ betting behind FMCG, pharma, IT, and healthcare segment when there is a sharp fall in the Indian stock market. As we witnessed a stock market crash on Tuesday after the disappointing Lok Sabha Election results, bulls switched to these safe havens on Dalal Street. This strategic move resulted in the Nifty FMCG Index being the only Index that ended higher on Tuesday, while the Nifty Pharma, Nifty Healthcare, and Nifty IT were the least affected indexesIndex in the previous session.”
Ganesh Dongre, Senior Manager — Technical Research at Anand Rathi, provides a clear forecast for the Nifty FMCG Index. He states, “With the Index breaking its hurdle at the 5,600 mark, it is now poised to register a 2-3 percent rise and touch the 6,000 level. Importantly, the Index has crucial support at the 5,200 level.” This forecast, offering a clear direction for the Index, can help investors and traders plan their next moves in the market with confidence.
FMCG stocks to buy
Asked about the FMCG stocks that may continue to attract bulls’ interest, Sumeet Bagadia, Executive Director at Choice Broking, said, “Traders and investors can look at shares of Marico, COLPAL, Dabur and Heritage Foods as these FMCG stocks are looking positive on the chart pattern. Dabur share price may go up to ₹650 apiece in the near term, whereas Heritage Food share price may touch the 575 per share mark in the short term.”
The Choice Broking expert said that Marico share price may touch ₹630 mark in the near term whereas COLPAL share price is set to touch ₹3200 level.
Disclaimer: The views and recommendations above are those of individual analysts, experts, and broking companies, not of Mint. We advise investors to check with certified experts before making any investment decisions.
You are on Mint! India’s #1 news destination (Source: Press Gazette). To learn more about our business coverage and market insights Click Here!
Download The Mint News App to get Daily Market Updates.
More
Less
Published: 05 Jun 2024, 11:31 AM IST