Skip to main content

🔵 FMCG Sector - The Hidden Gem in Market



Technical Newsletter                                                                                              2015

FMCG Sector - The Hidden Gem in Market
The CNX FMCG Index is designed to reflect the behavior and performance of FMCGs (Fast Moving Consumer Goods) which are non-durable, mass consumption products and available off the shelf. The CNX FMCG Index comprises of 15 stocks from FMCG sector listed on the National Stock Exchange (NSE). FMCG sector is known as the defensive player in market for its continuous growth regardless to the market sentiment. In the year 2008-2009 when Nifty fallen by more than 60% in a sharp downfall, even that time this sector continued to provide positive returns to long term and short term investors. 


We want to take this sector in focus due to its continuous growth supported by domestic demands. Most of the FMCG stocks are trading at high PE ratio and there is no sign to have a pause in their growth story. We can have a look upon the sector index that have been performed well and we are expecting to continue the trend for next decade.


We can have some examples here, if we calculate the returns have generated by Dabur, that is huge. In the year 2004, it was trading around Rs.15/- only and the current price of that stock is around Rs.300/-. Now we can calculate the return percentage easily. Same thing we can found in each and every other FMCG stocks. Definitely there is a safe heaven is hidden for long term investment.

More Articles For You >>

🟣 Implied Volatility: Calculate the Price Range of a Stock

  How can I understand how far a stock is likely to move?                                                                                                                                              The statistical distribution of prices :: Normal distribution & Log-normal distribution Normal Distribution gives equal chance of prices occurring either above or below the Mean (which is shown here as 0). We are going to use normal distribution for simplicity’s sake. If a price distribution is considered Normal , 68.20% of the time, you will be within 1 standard deviation. Mostly, stock exhibits a normal distribution/bell-curve. A normal distribution of data means most numbers in a data set are close to the average, or mean value, and relatively few examples are at either extreme. In layman’s terms, stocks trade near the current price and rarely make an extreme move. Implied volatility (IV) is one of the most important conc
13 comments
Full Article »

🟢 The Trading Mindset

We are emotional retail traders/investors who love to ride an adventurous journey in stock market irrespective of the risk and reward. We know that most of the retail investors are losing money in stocks and we kept searching for the holy grail trading strategy since years, that is not found yet and no guarantee when someone from us may find the sureshot trading system! The retail investors are having less access to the tradable information, we hear only that news which is made public for a purpose, generally published or forwarded to us because few of the biggies may have already used those information or for the purpose of making financial noise or may be those information are useless! Whenever we are hearing to any news or report regarding a company, ask yourself "why this information is public" and why such an important news is forwarded to retail investors through electronic, social or public media and how we can use them when everyone is already having the access on it.
39 comments
Full Article »