Shares of fast-moving consumer goods (FMCG) companies experienced a significant decline on December 9 after a weak quarterly update from industry major Godrej Consumer raised concerns about a slowdown in demand across the sector.
The Nifty FMCG index fell by over 2%, with several key stocks in the sector facing notable losses. Hindustan Unilever, the industry’s largest player, saw a 4% drop, marking its worst performance in six weeks. Shares of Dabur, Marico, Tata Consumer Products, and Colgate also slid by 2-4%, with Godrej Consumer Products taking the hardest hit, plummeting by over 9%. This broad-based selloff weighed heavily on the overall FMCG index, making it the worst-performing sectoral index for the day.
The slump was triggered by Godrej Consumer’s unexpected release of its quarterly sales update, where the company highlighted “subdued” demand conditions in India. The firm attributed this weakness to slow FMCG market growth, a slowdown in urban consumption, and moderating economic growth. Godrej Consumer also warned that these negative trends are likely to persist for a few more months, which further dampened investor sentiment in the FMCG space.
Stock Data:
- Hindustan Unilever: ₹2,390.95 (-3.74%)
- Nestle India: ₹2,225.20 (-1.88%)
- Godrej Consumer: ₹1,115.15 (-9.74%)
- Britannia Industries: ₹4,771.00 (-2.05%)
- Tata Consumer Products: ₹942.70 (-3.26%)
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