Nifty FMCG Index Rise 5%! Marico, Britannia, COLPAL Hit Record Highs Despite Election Volatility
Stock Market Today: Despite the stock market’s ups and downs following the Lok Sabha Election 2024 results, the Nifty FMCG Index has shown strong resilience. It jumped about 5 percent, reaching 5,800 in the early morning session and increased by one percent on Tuesday, even after the market crash due to the disappointing election results.
This highlights continued interest in FMCG companies like Dabur, Marico, Britannia, COLPAL, and Bikaji, despite the market’s volatility. Shares of Marico, Britannia, COLPAL, and Bikaji Foods hit new lifetime highs, while Dabur’s share price reached a new 52-week high shortly after the market opened.
Why FMCG Stocks are Rising
Avinash Gorakshkar, Head of Research at Profitmart Securities, explains the factors driving FMCG stocks. He says, “When the stock market falls sharply, investors often turn to safer sectors like FMCG, pharma, IT, and healthcare. After Tuesday’s market crash following the election results, investors moved to these safer options. This strategy made the Nifty FMCG Index the only one to end higher on Tuesday, while the Nifty Pharma, Nifty Healthcare, and Nifty IT indexes were less affected.”
Ganesh Dongre, Senior Manager of Technical Research at Anand Rathi, offers a forecast for the Nifty FMCG Index. He says, “The Index has broken through the 5,600 level and is now set to rise by another 2-3 percent, potentially reaching 6,000. The Index has strong support at 5,200.” This forecast provides clear guidance for investors and traders.
Top FMCG Stocks to Buy
Sumeet Bagadia, Executive Director at Choice Broking, shares his insights on FMCG stocks that may continue to attract investor interest. He suggests, “Investors can look at Marico, COLPAL, Dabur, and Heritage Foods. Dabur’s share price could rise to ₹650 in the near term, and Heritage Foods may reach ₹575.”
Bagadia also mentions that Marico’s share price could hit ₹630 soon, and COLPAL’s share price is likely to reach ₹3,200.
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