Focus on Stocks: CPSE, Auto and FMCG Stocks Defy Weak Market on Wednesday

Mumbai: July 22: CPSE, auto and FMCG stocks defied the weak market Wednesday, rising sharply even as broader indices slipped into the red as the Iran-US tensions continued and crude oil prices stayed near $90 a barrel. The rally comes against the backdrop of a busy week of Q1 FY27 corporate earnings with select pockets of buying interest emerging across the three sectors even as market-wide participation remained subdued. 

Select CPSE stocks rose on strength in energy majors Oil India and Power Grid Corporation along with state-run firms ONGC and NTPC. Auto stocks also rallied Wednesday with gains in Bajaj Auto and TVS Motor while FMCG stocks climbed on strength in Emami and Nestle India, along with Godrej Consumer Products and Radico Khaitan. 

The Nifty CPSE index gained 0.06 percent, Nifty Auto climbed 0.18 percent and Nifty FMCG surged 0.65 percent, while all three benchmarks outperformed the benchmark Nifty 50 index, which declined 0.70 percent Wednesday. 

CPSE  

Public sector undertaking stocks continued to hold up Wednesday, underlining strength in energy and power companies even as the broader market faced selling pressure on caution ahead of a busy week of quarterly earnings. Oil India was the top performer among CPSE stocks, rallying on firm crude realisations while Power Grid Corporation, ONGC and NTPC also rose on buying interest, even as several sector peers pulled the index lower Wednesday. 

• Oil India (OIL): Rs 450.60, up 1.22% from Rs 445.15 
• Power Grid Corporation (POWERGRID): Rs 289, up 0.80% from Rs 286.70 
• ONGC (ONGC): Rs 251.75, up 0.74% from Rs 249.89 
• NTPC (NTPC): Rs 350.45, up 0.55% from Rs 348.55 

Auto  

Auto stocks gained further Wednesday following healthy buying interest in the two-wheeler space on optimism around export demand and margin trends ahead of quarterly earnings season. Bajaj Auto rallied through the day on strong volumes while TVS Motor also jumped on fresh buying, even as auto component maker Bosch and battery manufacturer Exide Industries rose on dealer commentary that demand has remained steady despite supply chain constraints weighing on passenger vehicle majors Mahindra and Mahindra and Maruti Suzuki through Wednesdays session. 

• Bajaj Auto (BAJAJ- AUTO): Rs 11,019, up 5.92% from Rs 10,403.50 
• TVS Motor Company (TVSMOTOR): Rs 3,917, up 3.30% from Rs 3,792 
• Bosch (BOSCHLTD): Rs 41,570, up 1.71% from Rs 40,870 
• Exide Industries (EXIDEIND): Rs 447.35, up 0.88% from Rs 443.45 

FMCG  

FMCG stocks rose Wednesday despite broad weakness across major market indices as personal care major Emami and packaged foods maker Nestle India climbed sharply on buying interest, even as peer traders largely mixed through the session. Godrej Consumer Products and liquor company Radico Khaitan also rose on strong volumes even as staples bellwethers ITC and Varun Beverages declined for the day, pointing to stock-specific strength rather than an across-the-board rally. 

• Emami (EMAMILTD): Rs 416, up 3.74% from Rs 401 
• Nestle India (NESTLEIND): Rs 1,500, up 3.31% from Rs 1,451.90 
• Godrej Consumer Products (GODREJCP): Rs 1,071, up 1.59% from Rs 1,054.20 
• RadicoKhaitan (RADICO): Rs 4,152.20, up 1.56% from Rs 4,088.40  

The Nifty CPSE index added 4.10 points or 0.06 percent to close at 6,686.70 versus Tuesday’s close of 6,682.60. The CPSE index gained on strength in Oil India, Power Grid Corporation, ONGC and NTPC but losses in Cochin Shipyard, NLC India and NBCC limited the index’s gains Wednesday. 

The Nifty Auto index surged 49.05 points or 0.18 percent to end at 27,329.65 against its previous close of 27,280.60. While Bajaj Auto was the standout performer, stocks like Mahindra and Mahindra, Hero MotoCorp and Eicher Motors ended in the red. 

The Nifty FMCG index rose 316.60 points or 0.65 percent to finish at 49,233.80 against its previous close of 48,917.20. Emami and Nestle India led the charge, while ITC and Varun Beverages declined on heavy volumes. 

The Nifty 50 index tumbled Wednesday down 0.70 percent to settle at 24,017.75 against Tuesday’s close of 24,187.70 pressured by banking, financial services and realty stocks weighed down by persistent Iran- US tensions and high crude oil prices even as select pockets like CPSE stocks, autos and FMCG offered buyers some respite. 

India Volatility Index Nifty VIX climbed 5.17 percent to settle at 13.25 on Wednesday. 

Source

• nseindia.
• https://www.nseindia.com/market-data/live-equity-market?symbol=NIFTY%20FMCG
• https://www.nseindia.com/market-data/live-equity-market?symbol=NIFTY%20AUTO