BSE FMCG Index nears new high as falling input prices spark optimism

Rural demand another reason for buoyant sentiment towards FMCG stocks

The S&P BSE Fast Moving Consumer Goods (FMCG) Index — a gauge for the performance of consumer staple stocks — is nearing a new high as falling input prices and the past two years of underperformance have drawn investors to this sector.

The BSE FMCG Index on Thursday ended at 14,789 — only 4 per cent below its previous peak in October 2021. After BSE Auto, the sector is set to become only the second among BSE’s 19 sectoral indices to log fresh record highs.

A fall in the prices of palm oil — a key input for FMCG companies