Coimbatore, Dec 13 FMCG index on the NSE was a major casualty today with ITC losing a little more than 4 per cent and HUL down by about 3 per cent in the afternoon trade.

While ITC’s loss could be because of reports that its weightage has been cut in the FTSE All-World Index Series, generally FMCG stocks which have run up quite a bit as a sector are probably losing some of their sheen as investors try to rebalance their portfolio with the banking and financial stocks and auto stocks are gaining strength.

ITC, which has 8.6 per cent weightage on the Nifty, lost Rs 13.20 or 4.31 per cent. The stock’s performance could be because of reports of the stock’s weightage in the FTSE equity index being cut as part of quarterly review that comes into effect from December 21.

Generally, such an action in benchmark indices tracked across the globe like FTSE or MSCI by passive funds has a negative impact on the stocks concerned.

But while this could have been a reason in the case of ITC, the fall could also be because investors, who had heavily invested in FMCG or pharma stocks as a defensive play, are reducing their holdings, at least partly, to invest in stocks in other sectors like banking, NBFCs, auto etc., that are back in reckoning.

Mcleod Russel was down by Rs 11.25 at Rs 350.20 and HUL lost Rs 6.45 at Rs 523.30. Emami Ltd shed Rs 9.35 at Rs 594.70 and McDowell was down by Rs 31.30 at Rs 1961.70.

The FMCG stocks to gain were Jubilant Food that was up by Rs 17.55 at Rs 1,332.60, Britannia which gained Rs 5.60 to go up to Rs 499.65. Godrej Consumer Products, Marico, Tata Global, Dabur, Colgate and United Breweries made marginal gains.

The CNX FMCG Index was down by about 370 points.

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