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 >>

The Cautionary Tale of OptionSellers.com and James Cordier

At first glance, selling options can look like a great way to earn steady income. The idea is simple: you collect premiums upfront by betting that the options you sell will expire worthless. If that happens, you keep the premium and walk away with a profit. It sounds easy and low-risk—almost like free money. But behind the promise of consistent returns lies a level of risk that many underestimate. One of the most infamous examples of this is the collapse of OptionSellers.com , a firm run by James Cordier , which blew up in spectacular fashion in November 2018. This article breaks down what went wrong and the important lessons every trader can take from it. What Is Option Selling, and Why Is It Risky? Selling options means writing contracts (calls or puts) and receiving a premium in return. You're essentially making a bet that the market won’t move past a certain price. If you're right, the options expire worthless, and you keep the money. For example, if you sell a call o...
Post a Comment
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....
41 comments
Full Article »