The fast moving consumer goods (FMCG) space has been out of action for a long time in the stock markets. Over the last two years the Indian stock markets have been dominated by stocks from the pharma and IT sector initially. With both these sectors going out of favour on US regulatory concerns, the action has shifted in the last one year to sectors like automobiles, banking and capital goods. But in the entire churn, the one sector that has been extremely quiet has been FMCG. However, al that could be changing; at least that is what appears to be the case..

Nifty

Good growth in volumes and realizations..


End of demonetization woes for FMCG..
demonetization

No more internecine competitive wars..
Hindustan Unilever

A sharp fall in agricultural commodities..


There is a big rural market and rising purchasing power..


Finally, GST has been quite benign and favourable for FMCG companies..