For decades, the global economic stage was largely dominated by a handful of developed nations, often referred to as "the West" or the G7. However, a seismic shift has been underway, driven by the emergence of powerful economies from the Global South. At the heart of this transformation is the BRICS bloc, a group of nations that has grown in influence and is now actively challenging the long-standing status quo. Understanding the dynamic between BRICS vs West is no longer just a matter of geopolitics—it's a critical factor for investors navigating the complexities of the modern financial world.
The term BRIC was coined by Goldman Sachs economist Jim O'Neill in 2001, highlighting the potential of Brazil, Russia, India, and China to become major economic forces. South Africa joined in 2010, and more recently, the bloc has expanded to include Egypt, Ethiopia, Iran, Saudi Arabia, and the United Arab Emirates. This expansion is a clear signal of the group's growing ambition and appeal.The BRICS alliance isn't a formal organization like the European Union. Instead, it's a loose coalition of countries that coordinate on economic, financial, and political issues. Their primary goal is to create a more multipolar world, where the interests and perspectives of emerging economies are better represented in global institutions like the World Bank and the International Monetary Fund (IMF), which they believe are overly dominated by Western powers.
By 2024, the expanded BRICS group's collective GDP (based on Purchasing Power Parity) had already surpassed that of the G7, a powerful statement of its rising economic might. With a combined population of nearly half the world's inhabitants and vast natural resources, BRICS nations have a significant and growing influence on global trade and supply chains.
The competition between BRICS and the West is playing out across several key fronts: The Battle for Economic Influence and Multilateralism.
Historically, international finance has been shaped by institutions like the World Bank and the IMF, where Western nations hold considerable sway. In response, BRICS has established the New Development Bank (NDB), a multilateral lending institution aimed at funding infrastructure and sustainable development projects in member and other developing countries. This provides an alternative source of financing, bypassing the conditionalities sometimes attached to loans from Western-led institutions.
For India, this is a significant development. As a founding member, India plays a key role in the NDB, which can help secure funding for critical infrastructure projects, potentially boosting domestic growth and employment. This also reduces India's financial dependence on Western institutions, allowing for greater autonomy in policymaking.
The Push for De-Dollarization
The US dollar has been the world's reserve currency for decades, giving the United States immense economic power, including the ability to impose sanctions. BRICS nations, particularly Russia and China, have been vocal about reducing their reliance on the dollar. They are actively promoting trade in local currencies, a move that could insulate them from geopolitical pressure and currency fluctuations.
For Indian businesses and investors, this trend towards de-dollarization has several implications. While the US dollar remains crucial for international trade, an increase in local currency trade with BRICS partners could reduce currency conversion costs and risks for Indian exporters and importers. This could also lead to a more stable Indian Rupee in the long run. The Reserve Bank of India (RBI) is a key player in navigating this shift, ensuring a stable and secure financial environment.
Shifting Trade and Supply Chains 🔗
The relationship between BRICS and the West is not simply adversarial; it is complex and often symbiotic. Many Western companies have deep ties with BRICS nations, especially China and India, for both manufacturing and consumer markets. However, geopolitical tensions have led to discussions around "friend-shoring" and diversifying supply chains.
India, with its vast manufacturing capabilities and skilled workforce, is in a prime position to benefit from these shifts. The Indian government's "Make in India" initiative aligns perfectly with this trend, attracting foreign investment and positioning India as a key global manufacturing hub. Indian investors should look for opportunities in sectors that benefit from this increased domestic and international manufacturing focus, such as capital goods, logistics, and technology.
India's Balancing Act: A Strategic Position 🇮🇳India's role in the BRICS vs West dynamic is particularly unique. As a founding member of BRICS, India has been a strong advocate for a multipolar world and the interests of the Global South. However, India also maintains robust diplomatic, economic, and strategic ties with Western powers, including the United States, Europe, and Japan.
This strategic autonomy allows India to engage with all sides, leveraging its relationships to secure the best outcomes for its national interests. The Indian government is committed to strengthening its economic partnerships with BRICS members while also fostering trade and investment with Western nations. This balancing act is a testament to India's growing stature as a global power.Investment Implications for the Indian Market 📈The geopolitical landscape directly impacts financial markets. Here's how Indian investors can navigate this new reality:
Investment is something that gives you outstanding returns if done properly. If you have excessive funds lying in your bank account, save them wisely. You might have heard the above statement from every stock analyst who manages your wealth profile. This is because money is always measured in terms of time.
The time value of money states that the amount of money you have in present is worth more than that the same amount of money you will have in the future. Instead of letting your money sit idle, it would be much better if you park your surplus fund with liquid ETFs.
Liquid ETFs or Liquid Exchange Traded Funds are the mutual funds whose units are traded on the stock exchange. Unlike normal ETFs, the investment in liquid ETFs generally happens in overnight securities such as Repo or Reverse Repo securities, landing obligations and collateralized borrowings.
The primary motive of liquid ETF is to provide an income filled with low risk, at the same time gives a high liquidity level.
Investors who park their funds in liquid ETFs can earn significant returns on idle funds while at the same time remaining liquid to benefit from lucrative investment opportunities.
Liquid ETFs are only suited for large retail investors, portfolio management service (PMS) providers. Futures and Options (F&O) brokers and institutions invest directly in equities, HNI (High Net-worth Individuals).
These are several liquid ETF funds that are readily available to trade. These liquid funds can be traded immediately.
Equity market investors and traders have a habit of making continuous profits from transactions. However, sometimes they even face a loss but these are part of daily work.
The investors who have a tremendous amount of money, always find a better alternative so that they can increase their profit to a greater extent. One such alternative is liquid ETFs. Investing in ETFs enables investors to earn extra profit from excessive funds.
NSE and BSE are the funds that are available for trading where buyers and sellers quickly perform the transactions during the stock market hours on any stock trading days.
ETFs are gaining a lot of popularity these days as many investors consider liquid ETFs as the best instrument that can do wonders with their money.
However, if you are deprived of several benefits of investing in liquid ETFs or exchange-traded funds, this blog will help you out.
ETFs are not for long term investment. They are for short term investments and provide high liquidity, these are always preferred by high profile investors. Like other stocks, these funds are also listed in stock exchanges which are traded during the day. These funds are inter-linked with intraday trading and therefore the prices of the ETF heavily depend on the intraday trades.
For instance, if the intraday rates of the underlying assets change, the ETF prices also change. ETF investors are the experienced ones, and therefore they know what they have paid and what they will receive at the selling.
With liquid ETFs, investors move money from one place to another, construct strategies around their investment and manage intraday portfolios. Investing in ETFs allows investors to successfully invest in a diversified portfolio such as stocks, bonds, commodities, derivatives.
ETFs are passively managed funds that are specially designed to offer low-risk returns and high liquidity. Investors invest in an ETF when they sell equities from their portfolio. Many stockbrokers enable investors to reinvest 100 per cent of the proceeds into an ETF that too on the same day.
The stock market follows a settlement cycle of T+2 days, i.e. ETF units will get credited to investors’ accounts on the settlement day.
ETFs offer many benefits as in this type of scheme, individual investors hold their investment until they find a better alternative to move their funds. Another advantage of ETFs is that investors can forward the funds as a pledge against cash margins if investing in derivative segments.
Many brokerage houses accept ETFs as a cash margin if they want to trade in the derivatives segment.
Liquid exchange-traded funds offer investors better portfolio management by allowing them to invest in various sectors, industries, and country categories. They provide investors easy exposure to desired stock market segments.
ETFs are now available in the major asset classes, thus making them a good investment option. Also, investors can select to trade ETFs during stock market volatility or continue to invest based on their financial plans to earn profits.
The cost of investing in ETFs is quite less than mutual funds as the lower the costs, the higher the returns. Operational costs are an integral part of the structured investment as these costs include portfolio management fees, marketing costs, administrative expenses, distribution costs and more.
Here, lowering the costs means non-involvement of fund managers which means lower expenses of the funds. ETFs have lower expenses in transfers, monthly statements. Unlike open-ended funds, brokerages do require to send regular updates to the investors.
Mutual funds have more taxes than ETFs. This is because ETFs have a lower capital gain. The rate of capital gain tax applied to ETFs is also less as compared to mutual fund investments.
Liquid ETFs have only one dividend option. The daily earned dividends get reinvested into ETFs. Some ETF funds will credit bonus to its investors account weekly or monthly. Since the stock trading returns are low, brokerages waive off brokerage fees and depository participant changes on these funds.
Mutual funds and ETFs are similar investment types. However, the difference lies in the services they provide. ETFs provide higher liquidity than mutual funds and are also convenient to tap when cash flow is needed.
सोना दो सप्ताह के उच्च स्तर के पास पहुंच गया है और 21 मई के बाद से अपने सबसे बड़े साप्ताहिक बढ़त के साथ कॉमेक्स में 1830 डॉलर प्रति औंस के स्तरों पर है। कॉमेक्स वायदा चांदी के भाव भी 26 डॉलर के करीब पहुंच गए है। अमेरिकी फेडरल रिजर्व द्वारा पिछले सप्ताह की बैठक में संकेत मिले है कि छोटी अवधि में संपत्ति की कमी शुरू करने और ब्याज दरों में वृद्धि की संभावना नहीं है।डॉलर जो सोने के विपरीत दिशा में चलता है, एक माह के निचले स्तरों पर पहुंच चुका है। पिछले सप्ताह अमेरिका से जारी होने वाले बेरोज़गारी के आंकड़े भी फेड के अनुरूप रहे जिसमे बेरोज़गारी दावों में बढ़त दर्ज की गई है। एसपीडीआर गोल्ड ट्रस्ट में पिछले एक महीने के बाद 0.6 प्रतिशत की बढ़त दर्ज की गई है। घरेलु वायदा बाजार में सोना सप्ताह मे निचले स्तरों से 1000 रुपये तेज़ हो कर 48200 प्रति दस ग्राम रुपये के स्तरों पर है। चांदी पिछले सप्ताह निचले स्तरों से 2300 रुपये तेज़ हुई है और इसके भाव 68200 रुपये प्रति किलो के करीब रहे। 10 साल की अमेरिकी बांड उपज निचले स्तरों 1.25 प्रतिशत पर ही बनी हुई है। जिससे सोने और चांदी के भाव को सपोर्ट है।
इस सप्ताह के महत्वपूर्ण आर्थिक आंकड़े जिनमे सोमवार को अमेरिकी आइएसएम मैन्युफैक्चरिंग पीएमआई, बुधवार को एडीपी नॉन फार्म एम्प्लॉयमेंट चेंज, आइएसएम सर्विस पीएमआई, गुरुवार को ब्रिटैन की मौद्रिक नीति और शुक्रवार को अमेरिकी पैरोल के आंकड़े प्रमुख है।
इस सप्ताह सोने और चांदी में तेज़ी रहने सम्भावना है। सोने में 47800 रुपये पर सपोर्ट और 48500 रुपये पर प्रतिरोध है। चांदी में 66000 रुपये पर सपोर्ट और 69000 रुपये पर प्रतिरोध है।
Glenmark Life Sciences is a wholly-owned subsidiary of Glenmark Pharmaceuticals Ltd. Incorporated in 2011 and is situated in Maharashtra, India. Glenmark Life Sciences IPO is in news these days because it is open for a subscription (Initial Public Offering) from 27th July 2021 till 30th July 2021.
The company is responsible for manufacturing and supplying high-quality APIs for gastrointestinal disorders, cardiovascular disease, pain management, and diabetes, anti-infectives, central nervous system disease and other therapeutic areas. The revenues it has generated in India in the last two years have grown at 71.62%. While revenues generated internationally since 2019 have grown at 25.61%.The major competitors of the Glenmark Life sciences IPO within the API market contain Laurus Labs, Divis Labs, Shilpa Medicare, Aarti Drugs, and Solara Active Pharma Sciences.
Fresh equity shares up to a total of Rs 1,060 crore will be issued. Under this public issue, the issue particularly includes an offer for the sale of 63 lakh equity shares by Glenmark Pharma. In this way, a total of Rs 1,513.6 crore will be available at the upper level of the price range under the SME IPO. The company had planned to issue fresh equity for Rs. 1160 cr but then the issue size got reduced to Rs. 1060 cr. Even to the astonishment of investors, the shareholder quota was totally skipped. It then was termed as investor unfriendly move as it sent wrong signals in the primary market. The equity trading of the corporate is going to be listed on BSE and NSE. Glenmark shares are available at a premium of ₹300 within the grey market, that's from the difficulty price of ₹695 to ₹720 about 40 per cent higher. GMP is very volatile because the Glenmark shares were available within the grey market at a premium of ₹200 to ₹205. So, the share market trading is predicted to reply strongly to the public issue.
The reservation was kept in the following manner half of the total issue is for qualified institutional buyers, 35 per cent is kept for retail investors, and the remaining 15 per cent is for non-institutional investors. Glenmark Life Sciences has reduced its IPO size as compared to earlier. Also, if you want to invest in it, then at least 14 to 15 thousand will have to be spent. The company has made a lot of 20 shares. A person can buy at most 13 lots. The company will pay its expenses and borrow from the money earned from this IPO.
Grey market observers are attracted by Glenmark shares. API business is expected to reach USD 306 bn by the year 2027 due to the coronavirus. The second reason being we are becoming independent as of now in China so we don’t plan to export drugs from China. The issue when compared to its peers is reasonably priced in terms of price to its earnings ratio. Hence, we recommend subscribing to the IPO.
The term "debenture" comes from the Latin word “debentur,” meaning "they owe." In simple terms, debentures represent a company's debt. They are one of the most popular ways for companies to raise money, along with bonds.
When a company or the government needs funds from the public, they often issue debentures. These are essentially loans that the company must repay after a certain period. In return, the company pays the debenture holder a fixed interest at regular intervals—such as quarterly, monthly, or annually.
Key Features of Debentures
Companies can issue different types of debentures based on their needs. These can be classified according to security, tenure, interest rate, redemption terms, and more.
The two main types of debentures are:
1. Convertible Debentures: Convertible debentures give investors the option to convert their debenture holdings into equity shares of the issuing company. This conversion is based on specific terms outlined at the time of issuance, such as the conversion ratio (the number of shares one debenture can be converted into) and the conversion period (the time frame during which conversion is allowed). Investors are often attracted to convertible debentures because they offer the potential for capital appreciation if the company’s stock price increases, in addition to the regular interest payments. However, because of this conversion option, the interest rate on convertible debentures is usually lower than that on non-convertible debentures.
2. Non-Convertible Debentures (NCDs): Non-convertible debentures do not offer the option to convert the debenture into equity shares. These debentures are purely debt instruments, meaning the investor is only entitled to receive fixed interest payments and the principal amount upon maturity. Because they lack the potential upside of conversion to equity, NCDs typically offer higher interest rates compared to convertible debentures. This makes them an attractive option for investors seeking steady income with less exposure to equity market risks. NCDs are often considered safer investments compared to convertible debentures, as they do not depend on the company's stock performance.
There is also a lesser-known type called Partially Convertible Debentures, where only a portion of the debenture can be converted into company shares.
Registered Debentures:
Registered debentures are recorded in the company’s register of debenture holders. This means that the company keeps a record of the name, address, and details of the debenture holder. Because these debentures are registered, the transfer of ownership is formalized through a transfer deed, and interest payments are made directly to the registered holder. The benefit of registered debentures is that they provide a secure form of ownership, as the interest and principal repayments are assured to the individual whose name is on the register. However, this also makes them less flexible compared to bearer debentures, as they cannot be as easily traded.
Bearer (Unregistered) Debentures:
Bearer debentures are not registered in the name of any individual or entity in the company's records. Instead, they are transferable simply by delivering the debenture certificate to the buyer, making them more like cash instruments. The person holding the physical debenture certificate (the bearer) is entitled to receive the interest payments and the principal amount upon maturity. Because of this, bearer debentures offer a high degree of anonymity and ease of transfer but come with increased risk, as they can be easily lost or stolen. The ease of transferability makes them a popular option for those who want flexibility in their investments, though they are less secure than registered debentures.
Redeemable Debentures:
Redeemable debentures have a specified maturity date, at which point the issuing company is obligated to repay the principal amount to the debenture holders. These debentures may offer fixed or floating interest rates and are considered safer than equity investments, as the repayment date is predetermined. Redeemable debentures provide a clear exit strategy for investors, as they know when they will receive their capital back. Companies often use redeemable debentures to finance projects with a finite timeline, aligning the repayment date with expected cash flows.
Irredeemable (Perpetual) Debentures:
Irredeemable, or perpetual, debentures do not have a fixed maturity date. Instead, they exist indefinitely and are only repayable at the company’s discretion, usually upon liquidation or under specific circumstances outlined in the debenture agreement. These debentures provide a steady stream of interest income for investors but do not offer a guaranteed return of principal at a set time, making them more suitable for investors with a long-term investment horizon. Because of their perpetual nature, the interest rates on irredeemable debentures may be higher to compensate for the lack of a defined repayment date. They are often used by companies with stable cash flows looking for long-term financing without the pressure of repayment deadlines.
Companies issue debentures mainly to raise funds for growth, research, and other business needs. They prefer debentures over equity shares for two key reasons:
1. No Ownership Dilution: Issuing debentures does not dilute the company’s ownership, unlike issuing new shares.
2. Lower Cost: Raising funds through debentures is often cheaper than raising funds through equity shares.
In some cases, companies issue secured debentures to protect investors' money.
Debentures are important for companies with steady earnings, as they can easily service the debt and offer security with their assets. Companies must manage their debt-to-equity ratio carefully to maintain financial health.
Recent developments in the debenture market have made them more attractive:
Debentures play a crucial role in corporate financing by providing companies with a way to raise funds without diluting ownership. For investors, debentures offer regular interest payments, and in the case of convertible debentures, the potential to become shareholders.
The fast-moving consumer goods or FMCG companies are the ones that manufacture the daily use products. People, no matter rich or poor, use these products on a daily basis. The products comprise toothpaste, detergents, soaps, dish wash bars, oil, shampoo and others which are widely used in daily lives.
As urbanization grows at a large pace, the sector’s growth remains strong and robust. If we look at the smaller cities, towns and villages, the usage of products has been started on a broad basis. They have started to consume branded products without thinking about the prices of a product.
For instance, they have started to use the products from the organized sectors and therefore the large conglomerates are doing their duty by fulfilling the needs of the customers. Such things add more appeal to the sector. However, the paradigm of the sector is constantly changing and evolving. In other words, the sector acts as a dynamic in nature.
Despite all the difficulties faced by this sector, the FMCG sector has maintained its performance which indicates a strong and subtle future. This indicates that the sector still falls under the category of "believe to be" and investors find it as an attractive option for investors’ portfolios.
The sector is so dynamic that it has been called out as Rampant as the companies need to shift their branding, positioning, strategies within a short period of time. For instance, as the customer focus shifted towards the entry of Patanjali in Ayurveda and Organic products, the growth of the sector has been affected in a negative way.
Keeping this in mind, top companies such as Dabur and Hindustan Unilever have changed their plans and they subsequently started to move towards herbal products.
Due to the constant demand for regular use of products, investors start to believe that the FMCG sector is a steady performer in the stock market; however, the growth of the sector is still slow.
The data of Statistica states that the FMCG sector in India has shot four times to $110 billion (8.15 lakh Crore) which was less than Rs 2 lakh crore in 2011.
By 2025, it is estimated that the FMCG sector will grow at the rate of 15% on an annual basis, increasing the volume to $220 billion (Rs 16.30 lakh Crores). With the entry of top-notch e-commerce companies such as Amazon, Flipkart, the sector is likely to bounce back in the coming years.
Nowadays, the government of India also started encouraging the sector thus making a healthy and wealthy future. The government also declared several incentives to support the FMCG industry. Also, GOI has allowed 100% Foreign Direct Investment or FDI in order to receive growth.
The government minWhen it comes to building a well-rounded investment portfolio, including FMCG (Fast-Moving Consumer Goods) stocks is often a wise decision. FMCG companies produce goods that are in constant demand, such as food, beverages, household items, and personal care products. These goods are essential for daily life, making FMCG stocks a valuable part of any investment strategy.
In this blog, we’ll explore why FMCG stocks are important and how they can benefit your portfolio.
One of the biggest reasons to invest in FMCG stocks is the consistent demand for their products. People need to buy daily essentials like toothpaste, soap, cooking oil, and snacks, no matter what the economic situation is. This makes FMCG companies less sensitive to economic downturns, providing stability to their stock prices.
For instance, during tough times like a recession or pandemic, when other sectors might struggle, FMCG companies continue to sell their products because people can’t do without basic necessities. This reliability helps protect your portfolio from severe market volatility.
FMCG stocks are often referred to as "defensive" stocks. This means they tend to perform well even when the overall stock market is declining. In times of economic uncertainty or crisis, investors often move towards defensive stocks like FMCG because these companies have a steady revenue stream.
For example, while luxury goods or entertainment industries may suffer during a slowdown, people still buy groceries and household items. As a result, FMCG companies maintain their earnings and dividends, providing a cushion to your portfolio in uncertain times.
FMCG companies are known for their strong brands. Think about some of the biggest names like Nestlé, Unilever, Procter & Gamble, or ITC. These companies have built brands that consumers trust and prefer. This brand loyalty translates into consistent sales and long-term customer relationships, which in turn lead to steady revenue for the company.
As an investor, strong brands mean that the companies are likely to stay profitable, making their stocks a reliable addition to your portfolio.
FMCG companies are known for providing regular dividends to their shareholders. Since they generate steady cash flows, many FMCG companies reward investors with a portion of their profits through dividends. For investors, receiving regular dividends is an excellent way to generate passive income while also benefiting from the potential appreciation of the stock price over time.
Dividends also provide protection during market downturns, as they offer a consistent income stream even if the stock price drops temporarily.
FMCG stocks are generally less volatile compared to stocks in other sectors like technology, real estate, or energy. This lower volatility means that while you may not see huge spikes in stock prices, you also avoid significant drops. As a result, FMCG stocks are ideal for conservative investors who are looking for stable, long-term growth with limited risk.
The FMCG sector is experiencing significant growth in emerging markets like India, China, and Southeast Asia. Rising incomes, increasing urbanization, and changing lifestyles are driving demand for branded consumer goods in these regions. FMCG companies with a presence in these markets are positioned for growth, which can lead to higher stock prices in the future.
For example, in India, the demand for packaged food, beverages, and personal care products has increased as more people move to cities and adopt modern lifestyles. Investing in FMCG stocks gives you the opportunity to benefit from this growth trend.
Having FMCG stocks in your portfolio adds diversification. Diversification helps reduce risk by spreading your investments across different sectors. While sectors like technology, finance, or energy can be highly cyclical and impacted by economic conditions, FMCG stocks offer a level of protection because they perform well even during downturns.
By holding a mix of stocks from different sectors, including FMCG, you can balance your portfolio and reduce the risk of losing money when specific sectors underperform.
FMCG companies have the ability to pass on rising costs to consumers through price increases, making them a good hedge against inflation. When inflation occurs, the prices of raw materials, labor, and transportation rise. However, FMCG companies can adjust the prices of their products accordingly, maintaining their profit margins and protecting their stock prices.
For example, if the cost of raw materials like sugar or packaging goes up, a company like Nestlé may increase the price of its chocolates or coffee products. This ensures that their profit margins are maintained, even during inflationary periods.
Hindustan Unilever is the largest FMCG company in the country with a market capitalization of 6 lakhs. It is a listed company that is headquartered in London, UK. British conglomerate. Its products include Dove, Lifebuoy, Lux, Hamam, Lyril, Rexona, Surf Excel, Comfort, Sunsilk, Fair and Lovely, Lakme, Vaseline, Lipton, Brooke Bond, Pepsodent and others.
Incorporated on 24 August 1910, ITC was later named as Indian Tobacco Company. Headquartered in Kolkata, the company is diversified across multiple industries such as FMCG, hotels, packaging, agribusiness, and cigarettes. The famous brands like Nescafe, Gold flake, Classmate Notebooks and Wills Navy Cut.
Nestle was incorporated in March 1959, in Vevey Switzerland and operates in India. It brags a market cap of over Rs 1.7 lakh Crore. The company mainly produces dairy products that manufacture top brands such as Maggi, Kit-Kat, Milo, Milkmaid, Barone and Nestea.
Dabur is also known as Daactor Burman is a Ghaziabad based FMCG company that primarily manufactures healthcare-related products including Dabur honey, Chyawanprash, Dabur Hajmola and more.
The consumer product company is best known for manufacturing liquid detergents, soaps, Cinthol, Godrej No.1, Godrej Shikakai, colourants Godrej powder hair dye, Coloursoft, and Ezee liquid detergents.
Headquartered in Mumbai, the company has a market cap of more than 90,000 crores. Other listed companies include Marico, Gamble Hygiene, Jubilant FoodWorks, Britannia Industries, Emami, Tata Consumer Products amongst others.
If you want to buy a solid, strong yet steady portfolio, you should buy and hold FMCG shares for a longer period of time. Not only do these stocks offer attractive returns but also provide a decent dividend.
Here are reasons; why should you own them:
FMCG companies release new products at fixed intervals as the stock market is highly competitive. A company does not always fully depend on older products to remain in the game. Keeping this in mind, major FMCG companies have shifted towards ayurvedic and herbal products across the board. The company continues to launch new products to ensure market shares for them.
FMCG companies find India is a huge market with 1.3 billion people, which is more than 15% of the total population. Needless to say, the per cent is quite more and as per the research, a large part of the population comes from rural and suburban areas.
As long as the government gives a thumbs up to these sectors, FMCG is likely to grow at a rapid speed. One of the prime reasons is that the sector offers lucrative returns to its shareholders.
FMCG companies believe in innovation and hence the companies grab and get higher market returns. Nevertheless, the companies who fail to upgrade with time, often get the last seats in a row. Innovation of FMCG sectors is based on the following factors: research, consumer behavior, market demands.
The competition of FMCG companies is rising day by day which means there is a limited scope of extracting higher margins in indubitable products. As the product rates go beyond the standards, it is a huge possibility that the users may shift to the same products of different companies.
Hence, the margins are limited and dwarf to get higher sales and revenue.
Incorporating FMCG stocks into your investment portfolio is a smart decision due to their stability, defensive nature, and steady demand. With low volatility, regular dividends, and a strong presence in emerging markets, FMCG stocks provide diversification and help protect your investments during economic downturns. By including them in your portfolio, you can achieve a good balance between risk and reward, while benefiting from long-term growth and consistent returns.
Whether you're a conservative investor or someone looking to hedge against market volatility, FMCG stocks are a solid addition to your portfolio for long-term financial security.
imizes the burden of corporate taxation on MSME to further elevate the sentiment. The GST has aided the sector, even more, boosting the sentiments for the industry.
Hindustan Unilever is the largest FMCG company in the country with a market capitalization of 6 lakhs. It is a listed company that is headquartered in London, UK. British conglomerate. Its products include Dove, Lifebuoy, Lux, Hamam, Lyril, Rexona, Surf Excel, Comfort, Sunsilk, Fair and Lovely, Lakme, Vaseline, Lipton, Brooke Bond, Pepsodent and others.
Incorporated on 24 August 1910, ITC was later named as Indian Tobacco Company. Headquartered in Kolkata, the company is diversified across multiple industries such as FMCG, hotels, packaging, agribusiness, and cigarettes. The famous brands like Nescafe, Gold flake, Classmate Notebooks and Wills Navy Cut.
Nestle was incorporated in March 1959, in Vevey Switzerland and operates in India. It brags a market cap of over Rs 1.7 lakh Crore. The company mainly produces dairy products that manufacture top brands such as Maggi, Kit-Kat, Milo, Milkmaid, Barone and Nestea.
Dabur is also known as Daactor Burman is a Ghaziabad based FMCG company that primarily manufactures healthcare-related products including Dabur honey, Chyawanprash, Dabur Hajmola and more.
The consumer product company is best known for manufacturing liquid detergents, soaps, Cinthol, Godrej No.1, Godrej Shikakai, colourants Godrej powder hair dye, Coloursoft, and Ezee liquid detergents.
Headquartered in Mumbai, the company has a market cap of more than 90,000 crores. Other listed companies include Marico, Gamble Hygiene, Jubilant FoodWorks, Britannia Industries, Emami, Tata Consumer Products amongst others.
If you want to buy a solid, strong yet steady portfolio, you should buy and hold FMCG shares for a longer period of time. Not only do these stocks offer attractive returns but also provide a decent dividend.
Here are reasons; why should you own them:
FMCG companies release new products at fixed intervals as the stock market is highly competitive. A company does not always fully depend on older products to remain in the game. Keeping this in mind, major FMCG companies have shifted towards ayurvedic and herbal products across the board. The company continues to launch new products to ensure market shares for them.
FMCG companies find India is a huge market with 1.3 billion people, which is more than 15% of the total population. Needless to say, the per cent is quite more and as per the research, a large part of the population comes from rural and suburban areas.
As long as the government gives a thumbs up to these sectors, FMCG is likely to grow at a rapid speed. One of the prime reasons is that the sector offers lucrative returns to its shareholders.
FMCG companies believe in innovation and hence the companies grab and get higher market returns. Nevertheless, the companies who fail to upgrade with time, often get the last seats in a row. Innovation of FMCG sectors is based on the following factors: research, consumer behavior, market demands.
The competition of FMCG companies is rising day by day which means there is a limited scope of extracting higher margins in indubitable products. As the product rates go beyond the standards, it is a huge possibility that the users may shift to the same products of different companies.
Hence, the margins are limited and dwarf to get higher sales and revenue.
It may be noted that the FMCG sector gives a moderate performance during bull markets, however, when the stock market goes down, the same sector gives outstanding returns.
In addition to this, the majority of FMCG companies launch new products on a constant basis and if you include them in your portfolio, chances are high that your portfolio is screened from any unfavorable market segments.
Stock Market investing is a volatile venture. While investing in the stock market, it’s profitable to be very careful as an investor, you ought to be aware before diving into the dynamic stock marketplace.
Here, let's know about some of the best websites which are available for the same.
Moneycontrol[/caption]
Website: www.moneycontrol.com
Started by Victor and Sangeeta Fernandes. It was acquired by Reliance Industries In 2014. At Money control, the stock securities data like Sensex and Nifty values are provided.
You’ll find information about Indian stocks, trends, mutual funds, private finance, charts, market updates, cattle prices, commodities, currencies, IPOs, etc. along with Historic information and present efficiency of the companies. There is a platform so that your investments can be tracked. There you can also find a Money Control app to provide such services.
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NSE[/caption]
Website: www.nseindia.com
Started in 1992 and is headquartered in Mumbai. The current CEO of NSE is Vikram Limaye. As the organization has to provide their financial reviews to the NSE, hence discovering the financial information of any corporates, home and overseas buyers, new listings, IPO is easier. It also provides historical information relating to the NSE and NIFTY. The attraction to the traders is packages and certifications. It provides a free technical evaluation of Indian stocks, reports, charts, and other tools.
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BSE[/caption]
Website: www.bseindia.com
Founded by Preached Roy Chand in the 19th-century and headquartered in Bombay Quite similar to NSE India, you may find out historic information about companies and company movements. About 5,500 groups are indexed on BSE and an entire checklist of ‘public’ groups can also be obtained from this internet site.
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Investing[/caption]
Website: www.investing.com
Investing.com is a worldwide financial portal and net emblem owned by Fusion Media Limited, situated in the British Virgin Islands, it also provides apps for Android and iOS. It offers information about Stocks, Bonds, Commodities, Currencies, Interest Rates, Futures and Options.
It also provides evaluation, discussion board market news and charts, technical records, and financial tools related to the worldwide economic markets. The largest attractions are its tools like Stock screener, Fed charge screen device, foreign money converter interactive charts, stock charts, indices, and foreign exchange charts.
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Screener[/caption]
Website: www.screener.in
Screeners mainly can be used by equity traders in India. With this, you’ll be capable of have access to long-time financials of diverse companies and further simplify it.
It serves you with regular information about the marketplace financial tools, the company performance formerly and the current, comparison with their performance too, the company’s sales and losses and the stability sheet, evaluation research and charts are furnished in this platform.
It is a great website for the fundamental and technical evaluation of stocks. This website gives Investment tools which include stock screener, Fed rate monitor the Forex market correlation, Pivot Point Calculator, Profit Calculator, Margin Calculator, etc.
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Market Mojo[/caption]
Website: www.marketsmojo.com
Market Mojo helps in the analysis of portfolios and stocks independently. The website gives Pre—analyzed information on all shares, financials, information, price movement, broker recommendations, technical and all of the vital for the Indian stock markets.
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Tickertape[/caption]
Website: www.tickertape.in
Tickertape (“TT”) owned by small case Technologies Private Limited 2015, having its registered workplace in Bangalore a content material website and information provider for stocks, ETFs, and different investment instruments.
TT gives diverse offerings like inventory screener, diverse essential and technical parameters, Market Mood Index - sentiment indicator of Indian stock marketplace. It also provides simple fundamental knowledge about the stocks.
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Tijori[/caption]
Website: www.tijorifinance.com
It helps in the Analysis of financial information of a company & compares it against their closest competitors. It allows to Monitor the market performance of various companies across sectors. There is a new feature of Portfolio added - it keeps track of your investments and also provides the risk exposure factor.
It compares against niche sector-specific indices. which help in making your company's benchmarking more relevant. It Analyses the performance of more than 20 sectors.
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Ticker[/caption]
Website: https://ticker.finology.in
The ticker is a wholesome equity research platform and, rather it is quite a user-friendly website and easy to use.
They provide important market analysis tools, stock valuation for retail investors in order to enhance the stock analysis experience, tools and stock market research tools to figure out what are the problems actually faced by the investors while carrying out stock research.
The features such as special ratios & premium bundles attract investors to use Ticker.
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Stock Edge[/caption]
Website: www.stockedge.com
It provides More than 200 Technical and Fundamental research of the company stocks. In the case of Equity, it gives a complete Analysis of 5000+ stocks in a single click, also provides information about Mutual Funds. It provides features Edge Reports like Conall Analysis, Case Studies and IPO Notes. It provides Advanced Charting Tool too.
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