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Stock market update: FMCG stocks edge lower on CS slowdown bugle

India’s consumer goods industry could post its slowest pace of revenue growth in FY20.

Updated: Sep 19, 2019, 01.02 PM IST
Most of the Fast Moving Consumer Goods (FMCG) stocks were trading lower on Thursday after Credit Suisse sounded the bugle of slowdown in the sector. BSE FMCG index was trading over 0.3 per cent lower intraday.

India’s consumer goods industry could post its slowest pace of revenue growth in a decade and a half this financial year, Credit Suisse said, even as category leaders Dabur and Godrej Consumer sounded more optimistic about sales revival in the second half of FY20.

“We expect Q2 and Q3FY20 to see a further slowdown in revenue growth of our coverage universe to about 5 per cent. This will make FY20 the slowest year of growth for FMCG in 15 years. The last period of such low growth was 2000-03,”Credit Suisse said in a report on the consumer sector.

Following the release of the report, Dabur (down 0.2 per cent), Emami (down 0.35 per cent), Future Cons (down 3 per cent), Godrey Phillips (down 2.5 per cent), Gillette India (down 0.24 per cent), ITC (down 0.75 per cent), LT Foods (down 1 per cent) and Nestle (down 1.6 per cent) slipped in intraday trade.

However, Britannia (up 1.24 per cent), Colgate (up 1.5 per cent), Godrej Cons (up 1.09 per cent), Tata Coffee (up 1.8 per cent) were among the major gainers.
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