Nifty FMCG Index Declines More Than 1% as Investors Book Profits; Varun Beverages, ITC Head Losses

Mumbai, September 5, 2025: The Nifty FMCG index went into the red on Friday, closing at 56,355.20 or 1.40 percent down. The index, which opened firm at 57,176.15, fell as much as 1,192 points during the day before rebounding in part. Turnover was strong at ₹23,691.65 crore on volumes of 3.42 crore shares, although market breadth remained weak with 13 stocks falling, one rising, and one remaining flat.

Varun Beverages Drops 3.61%, ITC Falls 2.19% on Profit Booking

The selling was a day after the GST Council’s comprehensive tax rationalisation had induced a steep rally, and investors decided to book profits. Varun Beverages was the largest drag, losing 3.61 percent to ₹471.85. ITC also faced selling pressure, falling 2.19 percent to ₹406.80, as did Colgate-Palmolive, which lost 1.45 percent to ₹2,428.80. Hindustan Unilever and Dabur also gave up ground, losing 1.04 percent and 1.10 percent, respectively.

Among the other significant losers, Patanjali Foods lost 1.18 percent to ₹1,789, Emami declined 1.71 percent to ₹605, and United Breweries and United Spirits both edged down in sympathy with Varun Beverages.

Tata Consumer Rises 0.27%, Britannia Flat, Stabilising Index

While the broader FMCG trend was negative, Tata Consumer Products rose 0.27% to ₹1,074, supported by steady volumes. Britannia Industries remained flat at ₹6,083, providing stability amid widespread selling. Together, these counters cushioned the Nifty FMCG index’s decline, highlighting pockets of resilience even as major heavyweights booked profits during the session.

FMCG Index Pulls Back After Nearly 2% Three-Week Rally

The correction comes after a close to 2 percent three-week rally in the FMCG index, led by positive festive season demand expectations and expectations of GST reforms. In the period, Colgate-Palmolive had risen 12.2 percent, Britannia 12 percent, Nestle India 9.7 percent, Dabur 8.6 percent, and Hindustan Unilever 5.8 percent, so today’s pullback will mostly look like a round of profit-taking rather than a structural reversal.

Friday’s slide in FMCG counters reflects investors cashing out after a strong pre-festive run-up, with heavyweights like Varun Beverages and ITC leading the decline. However, with consumer demand expected to firm up during the festive season, analysts suggest the sector’s fundamentals remain intact, leaving scope for a rebound once profit-booking subsides.

REF: https://www.nseindia.com/market-data/live-equity-market?symbol=NIFTY FMCG

Disclaimer: At HDFC SKY, we take utmost care and due diligence in curating and presenting news and market-related content. However, inadvertent errors or omissions may occasionally occur.

If you have any concerns, questions, or wish to point out any discrepancies in our content, please feel free to write to us at content@hdfcsec.com.

Please note that the information shared is intended solely for informational purposes and does not make any investment recommendations