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More than a month has passed since India revealed the federation’s budget, which has provided a tremendous tax reduction aimed at reinforcement Urban consumption. This step, however, did not do much to raise consumer shares.

Nifty FMCG (fast-moving consumer goods)-which It picks up 15 stocks Listed on the National Stock Exchange of India – more than 3 % increased as the budget was offered on February 1. However, this gathering has stopped quickly.

The index decreased in 18 out of 23 sessions after increasing the budget and decreased by 9 % so far this year, compared to a decrease of 4.72 % in the NIFTY 50 index.

The expectation was that the shares gather, taking into account investors in increasing spending on consumers as soon as the tax cuts were entered in April. However, investors were forced to reduce their enthusiasm due to the confluence of factors.

Many consumers are likely to put the higher available income resulting from these tax cuts, or spend money on non -FMCG goods such as cars, according to Carnati Pathini, Director of the Stock Strategy at Wealthmills Securities.

“It is not overnight, as FMCG shares will now rise with tax cuts and RBI [Reserve Bank of India] Reduce. “It will take some time to see the effect,” said Pathini.

Analysts said the highest assessments have eased the attractiveness of many FMCG shares.

Bramod Jubby, co -founder of investment managers in Marcellus, said another reason for poor performance is the “reasonable level of hacking” for some personal products and home care. This means that companies have already captured a large market share, leaving a big room for further growth.

Source: NSE statistics

“The Indian FMCG companies have achieved a growth in anemia even before the last consumption slowed in the July quarterly to September,” says Jobi.

Companies such as Nestle India – with famous brands like Maggi, Nescafé and Kitkat under an umbrella – are also targeted – consumers with available income that can spend on distinctive products.

Data from the World Bank He explains that the GDP in India grew 7.1 % in the year 2023 last year to 2200 dollars.

Many banking companies were on “Specialization wave“

“They expected consumers to search for better products because they have become richer, but sales did not meet expectations.

He added that the growth of direct companies to the consumer has led to the removal of revenues from FMCG companies with traditional sales channels.

Since February, shares in Itc – The upper part of the FMCG NIFTY index fell by 30.7 % – by 12.3 %, while Hindustan Unilever (20.2 % weight) lost 11.4 %. Other companies like Tata consumer products and Nestle India 10.5 % and 5.4 % decreased, respectively.

Wealthmills Securities’ Bathini indicated that the profit expectations of FMCG companies were not particularly bright.

“Consumer stocks such as Hindustan Unilever, Jodrig Consumer and other products were facing a kind of margin pressure due to poor demand – which was also seen in GDP numbers in the second quarterPathni told CNBC inside India.

However, he added that the fastest growth seen in GDP in the third quarter of GDP can indicate a “kind of improvement” in the results of companies that focus on consumer.

The data of the gross domestic product of India showed the quarter -end 6.9 % growth year on private consumption5.9 % three months ago.

The question for investors is whether they should bet on the FMCG – or search elsewhere.

“You will need better profit growth and/or lower assessments of continuous performance,” said Harsha Obadiaia, chief investment official at Kotak Maendra, adding that FMCG shares will need better profit growth and/or lower assessments of continuous performance. “

“Without this, the shares may be linked to a range or in line with the movement of the market,” Upadhyaya told CNBC inside India.

For example, Hindustan Unilever trades a price rate to a number of 48.5 profits, compared to the NIFTY 50 -P/E index of about 20.

Gubbi Marcellus is positive in specific slices within the consumer area, instead of the sector as a whole, with highlighting food and drinks as well as kitchen appliances-which are still growing, given less barriers to entry and sales on e-commerce platforms.

Perhaps, the lesson for investors looking to find deals in the consumer sector in India is to distinguish in their stock choices as they are in the weekly shopping of grocery.

On Monday, the Minister of Trade and India of India will visit Washington. The minister is expected to be American commercial actor Jameson Jarir and US Trade Minister Howard Lootnick met to discuss a trade agreementAccording to an official. GOYAL visit a few weeks before the intervention of the mutual tariffs from the United States, which means that the imported Indian goods in the United States will face high fees, leading to about $ 7 billion of annual losses of India.

The United States wants zero ranks on auto imports in India. As part of a possible commercial deal between Washington and New Delhi, the Trump administration is pressing the latter Remove his definitions on car imports. However, India is reluctant to join this request, although it is open to lower additional fees, Reuters said, noting three sources familiar with the matter. Removing a car tariff in India – which reaches 110 % – will calm the entry of Tesla into the market. ELON Musk, which is established, is preparing to start selling its electric cars in India.

India remains decisive for the global supply chain. South Asia has the highest average tariff for American goods, so it is a little surprise that US President Donald Trump honestly threatened India with the luxury of revenge import. However, India has become increasingly important for manufacturers who vary from China, which means The definitions may not reduce the importance of New Delhi as a production centerCharles van der Stein, North American president, told your polytheistic.

The start of the British smartphone is not looking for India. Nothing, which launched the new phone (3A) on Tuesday, targets the Indian market, according to Ben Wood, the chief analyst of the CCS Insight. The company witnessed 557 % growth year in India last year, and made Nothing is the fastest brand for smartphones in 2024The founder Karl B said in January. Moreover, the co -founder of the company Akis Evangelidis is planning to move to India to head the operations there later this year.

Indian stocks offer signs of capture, yet Elegant 50 Close the index at 22,544.70, rises just less than 1 % than the previous week.
Indian government bonds revenue decreased for 10 years, decreasing slightly to 6.687 %.

On CNBC TV this week, Michelle Doris, CEO of the largest beer maker AB Inbev, said India.One of the big markets for growth in the future.

Meanwhile, CNBC SELEA MODY reported that investors are rethinking their exposure to emerging markets due to Trump’s tariff, however, the most dependent and less dependent countries dependent on India, American, “She is still scratching head“The results of Indian Prime Minister Narendra Modi for negotiation are still an agreement with Trump’s uncertainty, and weighs Indian stocks.

The American economy focuses this week, as February job data graduates on Friday and consumer price index on Wednesday. China and India also issue inflation reports for February on Sunday and Wednesday, respectively.

March 7: Non -agricultural salary statements in February, China balance in the trade in January to February

March 8: US Federal Reserve Chairman Jerome Powell Khattab

March 9: The inflation rate in China for the month of February

March 11: United States job holes and work rotation data for January

March 12: The inflation rate in India for the month of February, manufacturing and industrial production for the month of JanuaryThe US consumer price index for February

March 13: The US Product Product Index for the month of February