Nestle India shares gained 2.76% today

Nestle India shares saw a sudden spurt today. The stock jumped by 2.76% and closed the day today, 5^th January, 2025, at Rs 1,315. It was the top gainer at Nifty 50 today.  Nifty 50 ended the day today, down by 0.30%.

Before today, the stock had gained around 0.5% in the past 5 days. In the past 1 month, the stock has gained 5.46%. In the last one year Nestle India shares have gained 20.37%. Nifty 50 index has gained around 11.15% in the past 1-year period. The stock has outperformed the Nifty 50 index by around 9% in the past 1 year.

In the last 1-year period, Nifty FMCG index has come down by around 2.33%. Nestle India is a constituent of Nifty FMCG Index. It has 8.05% weight in the index currently. Nestle India shares outperformed this index by more than 22% in the past one year.

Why Nestle India shares gained today?

Nestle India shares may have gained today because of many investors (who want FMCG exposure) shifting from ITC to Nestle. ITC shares have seen heavy selling by investors in the first three trading days of the New Year. This after the government imposed additional excise duty on cigarettes. This additional duty will increase the price of cigarettes by around Rs 2-3 per share.  ITC shares ended the day today, down by 0.13%. In the past 3 days ITC shares have lost 12.98%. ITC stock has currently the highest weight in the Nifty FMCG index, at 32.70%.

Another reason for the rise in Nestle India shares may be some increase in geopolitical risk due to US military operations in Venezuela. FMCG stocks like Nestle are considered to be less risky during times of increased uncertainty.

Disclaimer : This content is only for informational purpose. It does not make any recommendation to act or invest.

Source: NSE