Following the disappointing election results, investors put their faith in defensive stocks as the FMCG index rose by over 5% today, with players like Marico, Zydus Wellness and Godrej Consumer Products rallying more than 7%.
Emami, alongside Heritage Foods, also gained over 13% on the charts today.
Hindustan Foods, Mrs. Bectors Food Specialities and Jyothi Labs too rose over 8% while Honasa Consumer, Bajaj Consumer, United Spirits, Britannia Industries, United Breweries, Tata Consumer and Nestle climbed 5%.
On Tuesday, barring Nifty FMCG, all other sectors ended on a negative note. The Nifty PSU Bank, Nifty Oil & Gas and Nifty Metal tumbled by over 1% following the weak poll results.Also Read | Aam Aadmi’s welfare to fare well for FMCG “Nifty FMCG has taken support near its 200-day EMA level and thereafter witnessed sharp recovery. This clearly indicates investors are preferring defensive stocks in a high volatile environment. Going ahead, any sustainable move above the level of 55,500 will lead to sharp upside rally in Nifty FMCG index,” says Sudeep Shah of SBI Securities while commenting on the technical placement of the index.Today, the markets opened on a negative note but have shown a sizable recovery.
The volatility index India VIX has witnessed a sharp upside rally in Tuesday’s trading session wherein it marked a high of 31.70 level, highest since February 2022. Despite witnessing a minor cool-off from higher levels, India VIX ended above 26.50 level with a substantial gain of nearly 28%. Going forward, 22-23 levels will be an extremely crucial support level and till VIX holds 22, it could incrementally keep moving higher, added Shah.
Also read: PSU stocks fall, Cochin Shipyard, Bharat Dynamics worst hit by up to 10%
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)
Omprakash Tiwary is a business writer who delves into the intricacies of the corporate world. With a focus on finance and economic landscape. He offers readers valuable insights into market trends, entrepreneurship, and economic developments.
