Quote on FMCG Sector: The ease in inflation will also aid in margin improvement Says Vincent KA, Geojit Financial Services
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Below View on Quote on FMCG Sector outlook from Vincent KA, Research analyst at Geojit Financial Services.
In the short term, we are positive on the FMCG sector as rural demand, which has been under pressure for the last 4-5 quarters due to elevated inflation, is now picking up. The recent increase in demand is likely to continue as a result of the anticipation of record-high rabi production, an increase in crop prices, and the GoI's steadfast support for the rural sector. The ease in inflation will also aid in margin improvement. However, we are cautious in the medium term due to growing concerns regarding the current heat wave and El Nino, which will likely increase the cost.
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