Demonetisation derailment : BSE FMCG Index sheds 8.5 %

Pain seems to be not getting over for the fast-moving consumer durables companies as they feel the pinch of slump in demand amidst a cash crunch post currency demonetisation. Consumer goods' companies have been the biggest losers as they have shed more than 8 per cent in trade over the past 45- days.

Hardest hit have been the FMCG stocks due to demonetisation impact as they have been directly affected by the lower consumption from the public at large. Maker of high end products like cosmetics, chocolates, etc., have taken a more severe hit as consumers have postponed their purchase and are only buying necessity items for usage.

BSE FMCG Index has lost close to 8.5 per cent from its November 8's close of 8590. FMCG index has touched its lowest point on November 21, and since then the index has mildly recovered, however, is still trading at its low.
Major FMCG players like HUL, Colgate, Marico, ITC, and Godrej Consumers have cut down on their guidance for the current quarter. Demand scenario will only ease in the coming months as the cash situation eases further.

Biggest FMCG Losers: -

ITC- CMP- Rs 228.75 (down 10.3 %)

Dabur- CMP- Rs 276 (down 8%)

Godrej Consumers- CMP- Rs 1457 (down 5.5 %)

HUL- CMP- Rs 800.7 (down 5 %)

Marico-CMP- Rs 251.35 (down 3.9 %)