Monday decreased for the second consecutive day as the main indices were impacted by fast-moving consumer goods (FMCG) companies and other geopolitical worries. After trading in a range, the Sensex ended the day down 200.66 points, or 0.25%, at 81,508.46. Likewise, the NSE’s Nifty 50 declined 58.80 points, or 0.24%, to close at 24,619 after the day.
GCPL’s shares closed at Rs 1,126.50 on the NSE after a 9% decline, the largest one-day decline since March 2020. It was the biggest loser among the Nifty FMCG index members.
After GCPL expressed concerns over its volume growth and margins, there was significant selling pressure on FMCG companies. GCPL released a business update for the current fiscal year’s third quarter on Friday after market hours. For the December quarter, the company anticipates mid-single-digit sales growth and flattish underlying volume growth. According to the report, increased palm oil prices have also put pressure on margins in the present inflationary environment.
Other FMCG stocks, including Tata Consumer, Marico, HUL, and Dabur, also saw decreases of more than 3% each in addition to GCPL. Except for one, every member of the Nifty FMCG index lost money, making it the sectoral index that lost the most. Nestle India, HUL, and Tata Consumer were also among the top five Nifty losers.
Apart from FMCG, the stocks of media, auto, oil and gas, and pharmaceutical companies were also significant sectoral losers. The biggest winners, however, were industrials, metals, and capital goods.
