FMCG Stocks Lose Steam: ITC, Colgate, Nestle, Marico Among Top Losers; Varun Beverages, Dabur Buck Trend

Market Performance

After three days of strong gains, FMCG stocks witnessed profit booking on August 22, dragging the Nifty FMCG index lower for the second straight session.

• Nifty FMCG index slipped 1% to 55,742.05 (at 1:05 pm).
• The index had earlier gained nearly 4% between August 18 and 20, following optimism around potential GST reforms.
• In the past two sessions, the index has lost more than 1.6%.

The sudden reversal highlights how quickly investor sentiment can shift when a sector sees a sharp rally.

Main News – FMCG Stocks Under Pressure

The selling came as investors booked profits after the recent spike. Several frontline names slipped into the red:

• ITC – down nearly 2%
• Colgate Palmolive – down nearly 2%
• Nestle India – down over 1%
• Marico – down over 1%
• Emami, United Breweries (UBL), Hindustan Unilever (HUL), and Britannia Industries – all trading weak with marginal losses

Not every stock was under pressure. A handful of FMCG names bucked the trend and managed to stay positive.

Company-Wise Snapshot

Here’s a quick look at how key FMCG players moved during the session:

• ITC & Colgate Palmolive: Both slipped around 2%, among the top losers.
• Nestle India & Marico: Each dropped over 1%, reflecting sector-wide pressure.
• Emami, UBL, HUL, Britannia: Posted mild declines, continuing the broader downtrend.
• Varun Beverages & Tata Consumer Products: Held firm with marginal gains.
• Radico Khaitan & Dabur: Managed to stay in the green.
• Godrej Consumer Products: Stood out, rising more than 1%, bucking the overall negative sentiment.

Sector Context – From Rally to Pause

The sector had been in focus since August 18, after Prime Minister Narendra Modi hinted at the next generation of GST reforms as a potential festive boost. That triggered a 3-day rally, lifting FMCG names across the board.

But the last two sessions saw traders shift gears, cashing in on recent gains. With the rally cooling off, the market seems to be waiting for fresh triggers before resuming its upward move.

Summary

• FMCG stocks saw profit booking after a sharp 4% rally in three sessions.
• Nifty FMCG index slipped 1% to 55,742.05, marking its second day of decline.
• ITC, Colgate, Nestle, Marico, Emami, UBL, HUL, Britannia – all traded lower.
• Varun Beverages, Tata Consumer, Radico Khaitan, Dabur, Godrej Consumer – held gains, with Godrej Consumer Products up 1%.
• Investor mood turned cautious after the rally, even as GST reform hopes remain in play.