FMCG stocks are trading in the red led by Hindustan Unilever and Gillette India. According to a leading financial daily, FMCG companies like Dabur, Marico, Godrej and ITC are likely to face slowdown on account of a delayed monsoon and weakening Indian economy. The companies are expecting a fall in rural demand which is one of their growth drivers. Also, demand in the mass-premium segment could suffer if economic scenario does not improve soon. We may recollect here that FMCG companies suffering from rising costs of input had till now maintained growth momentum on the back of high-margin products, strong rural demand and innovations. However, delayed monsoons have added further to their woes. The companies expect subdued revenue growth over next two quarters.
Media stocks are trading in the green led by Cinemax India and Sun TV. According to a leading financial daily, media firms are facing troubles because of lower advertising budgets this year. Advertisers have cut back on budgets for brand marketing and promotions citing slowdown in the economy. Resultantly, the advertising expenditure growth rates projected earlier by media agencies and consulting companies have been revised downwards. As per KPMG, television channels like Zee Entertainment and Star that were expected to clock in 12% growth are now expected to grow by only 8-10%.