Fast-moving consumer goods (FMCG) stocks in India are facing challenges due to slow growth in consumption and the inability of large companies to implement price hikes amid intense competition from small and regional players. The December quarter’s dismal earnings performance, where major FMCG players such as HUL and Nestle missed street estimates, has further dampened investor sentiment. In the first two months of 2024, shares of top FMCG firms have fallen 4-19%, while the Nifty FMCG sectoral index is down by about 6%. The sector is grappling with rising competitive intensity and increased promotional spending.
FMCG Stocks in India Face Headwinds Due to Slow Consumption Growth
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