Sensex down by 600 points, FMCG stocks among top losers

Fast Moving Consumer Goods (FMCG) stocks are buying and selling weak on Tuesday with the sectoral index down 1.9 per cent. FMCG index is among the top sectoral losers. Sensex inventory Nestle is down greater than 3 per cent.

Colgate Palmolive is down nearly 4 per cent. Honasa Consumer is down 3.7 per cent, Tata Consumer is down 3.4 per cent, Patanjali Foods is down 3.2 per cent, United Breweries is down 3 per cent, Godrej Consumer is down greater than 2 per cent, Britannia is down greater than 2 per cent.

BSE Sensex is down greater than 600 factors on broad based mostly promoting. Most sectoral indices are buying and selling within the purple.

Corporate commentary on the FMCG sector has highlighted the muted demand setting prevailing in Q4FY24, which has been projected by knowledge businesses for CY24, Emkay Global Financial Services mentioned in a current report.

Nielsen, which tracks retail knowledge, is constructing a case of 4.5-6.5 per cent worth progress for the sector. Kantar, which tracks family consumption knowledge, echoed the identical muted outlook, the report mentioned.

With the El-Nino impact remaining until May-24 (agri progress is projected at 1.8 per cent in FY24; a seven-year low), and expectation of no materials shift in consumption from elections (as up to now), demand outlook stays weak for 1HFY25, Emkay Global Financial Services added.

BSE Sensex was buying and selling at 72,161.54 factors within the morning session, down 586.88 factors. Nestle is down greater than 3 per cent whereas TCS is down greater than 2 per cent after buzz of a block deal within the inventory.

V Okay Vijayakumar, Chief Investment Strategist, Geojit Financial Services, mentioned within the near-term a change within the international market assemble will occur if the Fed sends a hawkish message stronger than market expectations. This can’t be dominated out for the reason that declining development in US inflation has been arrested within the final two months and the Fed is at all times identified to answer “incoming knowledge and evolving outlook.” The spike within the greenback index and the US bond yields mirror this concern.

Investors could await readability to emerge on the Fed response on Wednesday.

The resilience of the US market supported by the surprisingly strong financial system is the muse of the continuing international market. The finish of the decades-long deflation in Japan and the Nikkei index posting file highs additionally has been a supporting issue, he mentioned.

Deepak Jasani, Head of Retail Research, HDFC Securities, mentioned traders in Asia might be carefully monitoring China, the place the top securities regulator mentioned the defaulted developer on the coronary heart of the nation’s actual property disaster falsely inflated income by greater than $78 billion within the two years main as much as its failure.

Shares within the Asian-Pacific area had been buying and selling beneath strain as traders await cues from varied central financial institution choices over the week, beginning with the Bank of Japan, he mentioned.

(With inputs from IANS)