FMCG stocks outperform on lower inflation estimates

Fast-moving consumer goods (FMCG) stocks were big gainers in a weak market after the monetary policy committee (MPC) of the Reserve Bank of India (RBI) cut the inflation forecast for FY26 to 4 per cent, from 4.2 per cent earlier, and saw urban consumption improving.

- TANMAY TIWARY & RAM PRASAD SAHU

Fast-moving consumer goods (FMCG) stocks were big gainers in a weak market after the monetary policy committee (MPC) of the Reserve Bank of India (RBI) cut the inflation forecast for FY26 to 4 per cent, from 4.2 per cent earlier, and saw urban consumption improving. The decision to lower the inflation forecast was on the back of robust agricultural output and falling crude oil prices.

The positive trigger helped the Nifty FMCG index gain 1.8 per cent to close the day at 55,264.8. It was the only index to end in the green as most indices, including the benchmarks, closed with losses. The top gainer among consumer majors was Godrej Consumer Products, which saw a 3.8 per cent jump. Britannia Industries, Nestle India and Emami, were up 3 per cent each.