Nestle India’s share up by more than 1% today, as FMCG stocks gain amidst heightened economic uncertainty

Amidst the decline that is prevailing in the Indian equity markets today, 26^th August, Nestle India’s shares are gaining. At 10:20 a.m. the stock is among the top 3 gainers at Nifty 50. It is up by 1.26%, trading at Rs 1,167.50. Nifty 50 index is down by 0.76% at this time. Just 7 of the 50 stocks that make up Nifty 50 are in green at this time.

Indian equity markets are down today, after US government issued official notification yesterday, imposing additional 25% tariff on Indian goods, from August 27^th. These additional tariffs are being imposed as penalty for India buying Russian oil. With these additional tariffs, Indian goods coming to USA now face a total tariff of 50%. Now Indian goods have one of the highest US tariffs imposed on them.

Non-cyclical FMCG stocks showing some gains

Nestle’s share may be gaining today because it is more of a non-cyclical stock. Non-cyclical shares are those whose performance is less affected by economic cycles. For instance, demand for Nestle’s products, such as Maggi noodles, is likely to remain stable even if the Indian economy enters a severe downturn or recession due to the high US tariffs. Fast Moving Consumer Goods (FMCG) companies are generally considered to be more non-cyclical.

Two other FMCG stocks, ITC and HUL are among top gainers at Nifty 50 today, at this time. HUL’s share price is up by 0.92% at this time. ITC’s share is up by 0.06% at this time.

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Source: NSE