{"id":3712,"date":"2025-02-05T12:09:27","date_gmt":"2025-02-05T12:09:27","guid":{"rendered":"https:\/\/www.niftytrader.in\/nifty-demo\/?p=3712"},"modified":"2025-05-12T16:38:38","modified_gmt":"2025-05-12T11:08:38","slug":"fmcg-stocks-extend-losses-for-third-consecutive-session-post-budget-2025","status":"publish","type":"post","link":"https:\/\/www.niftytrader.in\/markets\/fmcg-stocks-extend-losses-for-third-consecutive-session-post-budget-2025\/","title":{"rendered":"FMCG Stocks Extend Losses for Third Consecutive Session Post-Budget 2025"},"content":{"rendered":"<h3><strong>Highlights:<\/strong><\/h3>\n<ul>\n<li><strong>Nifty FMCG index down 1.32%<\/strong>, trading at <strong>56,496<\/strong> as of <strong>1:50 PM on February 5<\/strong>.<\/li>\n<li><strong>Three-day loss totals nearly 5%<\/strong>, wiping out post-budget gains.<\/li>\n<li><strong>United Breweries, Nestle India, United Spirits down over 2%<\/strong>.<\/li>\n<li><strong>ITC, Tata Consumer, Britannia, Dabur, Hindustan Unilever, Marico in red<\/strong>.<\/li>\n<li><strong>Varun Beverages, Colgate Palmolive, P&amp;G Hygiene, Balrampur Chini Mills trade in green<\/strong>.<\/li>\n<li><strong>ITC Hotels surges 3.19%<\/strong>, bucking the trend.<\/li>\n<\/ul>\n<h2><strong>FMCG Stocks in Decline Despite Budget Boost<\/strong><\/h2>\n<p>The <strong>Nifty FMCG index continued its downward trend for the third straight session<\/strong>, shedding <strong>1.32% to trade at 56,496<\/strong> on February 5. This extends the sector\u2019s total losses to nearly <strong>5%<\/strong> since the post-budget rally on February 1.<\/p>\n<p>Several <strong>frontline FMCG stocks<\/strong> faced heavy selling pressure, with <strong>United Breweries, Nestle India, and United Spirits falling over 2%<\/strong>. Other key players, including <strong>ITC, Tata Consumer, Britannia, Hindustan Unilever, Dabur, and Marico<\/strong>, also ended in the red.<\/p>\n<h2><strong>Why Are FMCG Stocks Falling?<\/strong><\/h2>\n<p>The decline comes despite the <strong>Union Budget 2025-26 introducing income tax relief measures<\/strong>, expected to <strong>boost consumer spending<\/strong>:<\/p>\n<ul>\n<li><strong>Tax rebate limit increased to \u20b912.75 lakh per annum.<\/strong><\/li>\n<li><strong>Basic exemption limit raised from \u20b93 lakh to \u20b94 lakh under the new tax regime.<\/strong><\/li>\n<\/ul>\n<p>Initially, market analysts expected these changes to <strong>drive higher consumption<\/strong>, leading to a rally in FMCG stocks on February 1. However, the <strong>sector has since witnessed profit booking<\/strong>, reversing early gains.<\/p>\n<h2><strong>Top Losers on the Nifty FMCG Index<\/strong><\/h2>\n<table>\n<thead>\n<tr>\n<th><strong>Stock<\/strong><\/th>\n<th><strong>Loss (%)<\/strong><\/th>\n<th><strong>Price (\u20b9)<\/strong><\/th>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td>United Breweries<\/td>\n<td>-3.00%<\/td>\n<td>2,073<\/td>\n<\/tr>\n<tr>\n<td>Nestle India<\/td>\n<td>-2.41%<\/td>\n<td>&#8212;<\/td>\n<\/tr>\n<tr>\n<td>United Spirits<\/td>\n<td>-2.19%<\/td>\n<td>&#8212;<\/td>\n<\/tr>\n<tr>\n<td>ITC<\/td>\n<td>-1.53%<\/td>\n<td>&#8212;<\/td>\n<\/tr>\n<tr>\n<td>Tata Consumer<\/td>\n<td>-1.41%<\/td>\n<td>&#8212;<\/td>\n<\/tr>\n<tr>\n<td>Britannia<\/td>\n<td>-1.27%<\/td>\n<td>&#8212;<\/td>\n<\/tr>\n<tr>\n<td>Dabur<\/td>\n<td>-1.20%<\/td>\n<td>&#8212;<\/td>\n<\/tr>\n<tr>\n<td>Hindustan Unilever<\/td>\n<td>-1.08%<\/td>\n<td>&#8212;<\/td>\n<\/tr>\n<tr>\n<td>Marico<\/td>\n<td>-0.97%<\/td>\n<td>&#8212;<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<h2><strong>Bright Spots: FMCG Stocks Trading in Green<\/strong><\/h2>\n<p>While most <strong>FMCG stocks were in red<\/strong>, a few managed to <strong>resist the downtrend<\/strong>:<\/p>\n<ul>\n<li><strong>Varun Beverages, Colgate Palmolive, P&amp;G Hygiene, and Balrampur Chini Mills<\/strong> recorded <strong>minor gains<\/strong>.<\/li>\n<li><strong>ITC Hotels saw a sharp surge of 3.19%<\/strong>, trading at <strong>\u20b9168.97 per share<\/strong>.<\/li>\n<\/ul>\n<h2><strong>Market Outlook: Will FMCG Stocks Rebound?<\/strong><\/h2>\n<p>Despite short-term losses, analysts believe <strong>long-term growth drivers remain intact<\/strong> for the FMCG sector. Factors like <strong>rising disposable income, urbanization, and increasing digital consumption trends<\/strong> could help stabilize the market.<\/p>\n<p>Investors will now focus on <strong>Q4 earnings reports<\/strong> and <strong>consumer demand trends<\/strong> post-budget to assess the sector&#8217;s future trajectory.<\/p>\n<p>FMCG stocks have faced <strong>profit booking post-Budget 2025<\/strong>, reversing initial gains. While <strong>short-term volatility persists<\/strong>, analysts expect <strong>a potential recovery in the coming weeks<\/strong>, depending on <strong>consumer demand trends and macroeconomic factors<\/strong>.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Highlights: Nifty FMCG index down 1.32%, trading at 56,496 as of 1:50 PM on February 5. Three-day loss totals nearly 5%, wiping out post-budget gains. United Breweries, Nestle India, United Spirits down over 2%. ITC, Tata Consumer, Britannia, Dabur, Hindustan Unilever, Marico in red. Varun Beverages, Colgate Palmolive, P&amp;G Hygiene, Balrampur Chini Mills trade in [&hellip;]<\/p>\n","protected":false},"author":1,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[615],"tags":[],"ppma_author":[41],"class_list":{"0":"post-3712","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-stock-market-news"}," _eael_post_view_count":0,"authors":[{"term_id":41,"user_id":1,"is_guest":0,"slug":"niftynews","display_name":"NiftyTrader","avatar_url":{"url":"https:\/\/trending.niftytrader.in\/wp-content\/uploads\/2025\/01\/Logo-1.png","url2x":"https:\/\/trending.niftytrader.in\/wp-content\/uploads\/2025\/01\/Logo-1.png"},"0":null,"1":"","2":"","3":"","4":"","5":"","6":"","7":""}],"_links":{"self":[{"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/posts\/3712","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/comments?post=3712"}],"version-history":[{"count":1,"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/posts\/3712\/revisions"}],"predecessor-version":[{"id":3714,"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/posts\/3712\/revisions\/3714"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/media\/3708"}],"wp:attachment":[{"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/media?parent=3712"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/categories?post=3712"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/tags?post=3712"},{"taxonomy":"author","embeddable":true,"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/ppma_author?post=3712"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}