From mint · Dhanya Nagasundaram · · 2m
Nifty FMCG down 22% in 2026; Diwali shopping opportunity for investors
Experts decode Nifty FMCG support levels as Diwali shopping season approaches.
In brief
Experts decode Nifty FMCG support levels as Diwali shopping season approaches. Nifty FMCG index fell 22% in 2026 with 13 stocks negative returns; experts suggest Diwali demand could trigger recovery if index holds above 42,000. Originally reported by mint.
Nifty FMCG index down 22% in 2026
The Nifty FMCG index has fallen over 22% year-to-date and about 16% over the past six months, significantly underperforming the Nifty 50.
13 FMCG stocks negative returns
The Nifty FMCG index has fallen over 22% year-to-date with 13 sector stocks posting negative annual returns.
Rising commodity costs squeeze margins
Higher commodity prices, particularly crude oil and palm oil, are squeezing margins as companies struggle to pass on cost increases to consumers.
HSBC growth expectations moderate
HSBC reports growth across consumer staples coverage, excluding ITC, is expected to moderate to around 10% in the second half of FY27 from 14% in the first half.
Kranthi Bathini on consolidation phase
Kranthi Bathini, equity strategist at WealthMills Securities, said FMCG stocks are undergoing a consolidation phase due to rising input costs and inflation.
Diwali shopping opportunity
Gaurav Arora, Head of Research at SAHI, said FMCG stocks could see renewed buying interest as Diwali-related demand builds through early November.
Technical support levels
The Nifty FMCG index has hit a fresh 52-week low near 42,000, which now serves as an immediate support level to watch.
Key technical levels
Sachin Gupta noted the Nifty FMCG index is approaching a crucial demand zone between 39,400 and 42,000 on the monthly chart.
Recovery conditions
If the index holds within the 39,400, 42,000 demand zone and major constituents show reversal signals, a gradual recovery towards 46,000, 49,700 could unfold.
Investor caution
Arora cautioned that the recovery could be short-lived, festival-led rather than the beginning of a sustained uptrend.
What happens next
Investors should watch whether the Nifty FMCG index can hold above 42,000 to build on any recovery before Diwali.
In short
Nifty FMCG index fell 22% in 2026 with 13 stocks negative returns; experts suggest Diwali demand could trigger recovery if index holds above 42,000.
