Commodity Online
MUMBAI: For the second consecutive day, FMCG Companies continued a downslide on stock markets as the BSE-FMCG index slumped by 2.35% to 1842.45 points in the initial trading hour today.
Food processing majors Britannia Industries Ltd plunged by 1.03% to Rs.1252, while Hindustan Uniliver Ltd fell by close to 2% at Rs. 225.55 in the early trading session on the BSE. Among the food majors, ITC and Nestle India Ltd too, witnessed a heavy fall. ITC Ltd shed by 3.10% to Rs.162.30, while Nestle India Ltd shrunk to Rs. 1460 down by 2.26%.
The benchmark index, Sensex was down by 1.6% at 8062.40 levels in the morning trading session today.
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The stocks traded in red yesterday as the FMCG index had dropped by over 4% to 1869 points taking a lead to bring down the Sensex to its lows of 8239. Hindustan Uniliver Ltd had tumbled by 6% to Rs.226, while ITC Ltd had touched Rs.166 down by close to 5% during the day.
According to experts, there had been a selloff in the sector due to uncertainty over the food crop availability this season. In addition to it, India is reportedly showing a consistent fall in the estimates of the sugar production for the current season, which has led to the situation of increased imports of sugar, affecting the commodity prices in the country. This has raised the concerns for the companies to perform well in the coming days.
