RBI’s Monetary Policy Committee (MPC) on Wednesday (April 9) announced a 25 basis point reduction in the repo rate, lowering it from 6.25 percent to 6.0 percent.
The decision was revealed by RBI Governor Sanjay Malhotra following a three-day meeting of the six-member committee that commenced on April 7. This policy shift suggests that the RBI is well-positioned to further rate cuts if economic conditions warrant such action.
Indian FMCG stocks saw a notable rise during Wednesday’s trading session, as investors responded positively to the RBI’s rate cut and the downward revision of its inflation forecast. The developments fueled optimism around improved urban consumer demand, with expectations of a boost in volume growth for consumer goods in the upcoming fiscal year.
Nifty FMCG index surged by 2 percent, reaching an intraday high of 55,412 points, up from its previous close of 54,300.25 points.
In recent months, Indian FMCG companies experienced a shift in consumer behavior, with increased demand for smaller product packs due to elevated food inflation, which in turn pressured profit margins. However, the recent decline in food inflation—largely attributed to falling vegetable prices—has brought some relief and could help revive consumer demand going forward.
RBI has stated that the outlook for food inflation has improved. A broad-based and significant seasonal decline in vegetable prices has contributed to this positive trend. For FY26, the RBI projects inflation at 3.6 percent in the first quarter, 3.9 percent in the second, 3.8 percent in the third, and 4.4 percent in the fourth quarter.
Previously, the Consumer Price Index (CPI) forecast for Q1 FY26 was set at 4.5 percent, and 4 percent for Q2 FY26. However, the RBI has revised its estimate for Q4 FY26 upward to 4.4 percent, from the earlier projection of 4.2 percent.
Following are a few FMCG stocks that jumped after the RBI rate cut:
ITC Limited
With a market cap of Rs. 5.21 lakh crores, the stock moved up by around 2 percent to hit an intraday high at Rs. 418.95 on BSE, during Wednesday’s trading session.
Hindustan Unilever Limited
With a market cap of Rs. 5.5 lakh crores, the stock moved up by around 3 percent to hit an intraday high at Rs. 2,354 on BSE, during Wednesday’s trading session.
Britannia Industries Limited
The shares of one of India’s leading food companies with a 100-year legacy jumped by 3.3 percent to Rs. 5,351 on Wednesday, with a market cap of Rs. 1.28 lakh crores.
Nestle India Limited
The stock reached an intraday high at Rs. 2,362.55 on BSE, up by nearly 4 percent on Wednesday, compared to its previous closing price of Rs. 2,275.25 with a market cap of Rs. 2.26 lakh crores.
Godrej Consumer Limited
The shares of a leading emerging markets FMCG company jumped by 4.2 percent to Rs. 1,247.85 on Wednesday, with a market cap of Rs. 1.27 lakh crores.
Emami Limited
With a market cap of Rs. 26,364.6 crores, the stock surged about 5 percent to hit an intraday high at Rs. 610.5 on Wednesday, as against its previous closing price of Rs. 581.1.
Written by Shivani Singh
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