It’s raining blues

IIPM PUBLICATION
Monsoons are round the corner! The Rain God has an important role in the FMCG sector. The financial year 2002-03 experienced 20% below normal monsoons, which pulled he Sensex down by 10%, and with it, FMCG stocks plunged, too. In 006, after a sluggish start in June, monsoons recovered in early July. ITC & HLL are currently undergoing some erosion from the peaks. And analysts predict more decline. Does that mean FMCG stocks are obnoxious in the monsoons? Not really, if we compare them to other stocks (like those of tractor and fertiliser companies) dependent on rural economy. On this benchmark, HLL, ITC & Colgate Palmolive are excellent FMCG stocks to hold. T here’s more to cheer! HLL & Godrej Consumer Ltd. have announced price hikes in their products, which can neutralise damage caused by monsoons. Moreover, companies whose food business is doing well, like ITC, are comparatively less affected. So who knows, FMCG might just do the jingle this season.

For More IIPM Articles, Click here

Source :- IIPM Editorial, 2006, Editor - Prof. Arindam Chaudhuri

For More IIPM Info, Visit below....
http://iipmmemory.blog.co.uk/
http://iipminterests.blog.co.uk/
http://iipm-brightness.blog.co.uk/
http://iipm-mission.blog.co.uk/
http://iipm-process.blog.co.uk/
http://iipm-express.blog.co.uk/
http://iipm-power.blog.co.uk/
http://iipm-blog.blog.co.uk/
http://iipm-amazing.blog.co.uk/
http://iipm_media.rediffblogs.com/
http://iipmnational.rediffblogs.com/
http://iipmmarvelous.rediffblogs.com/
http://rupiah.rediffblogs.com/
http://iipmcurrency.rediffblogs.com/