FMCG Stocks Extend Gains as Markets Rally for Sixth Straight Session
Indian equity markets notched their sixth consecutive session of gains on May 27, buoyed by robust performances in FMCG, banking, and auto sectors. The benchmark Sensex climbed 380 points to close at 76,493, while the Nifty 50 advanced 149 points to settle at 23,259, both notching new closing highs. This momentum prevailed despite mixed global cues and investor caution ahead of key macroeconomic data and election results.
FMCG stocks were among the top contributors to the rally, drawing sustained investor interest amid evolving consumption patterns and resilient rural demand. ITC, Hindustan Unilever, and Britannia Industries saw upward movement, reinforcing the sector’s appeal as a defensive play amid market uncertainty. Analysts note that the sector’s focus on innovation, pricing strategies, and rural penetration continues to pay dividends.
Market sentiment was further bolstered by gains in banking and auto counters. HDFC Bank, ICICI Bank, and Axis Bank posted notable advances, underpinned by confidence in credit growth and stable asset quality projections. Meanwhile, auto majors like Tata Motors and Mahindra & Mahindra climbed after strong sales momentum and improving outlook in both domestic and export markets.
The upbeat performance comes as investors adopt a cautiously optimistic stance ahead of India’s GDP release and the outcome of general elections, both expected to significantly influence market direction. Foreign institutional inflows also provided support, with FIIs being net buyers to the tune of ₹4,132 crore in the cash market, reflecting renewed confidence in India’s medium-term growth trajectory.
On the BSE, the FMCG index rose nearly 0.80%, driven by strength across leading staples and discretionary names. Analysts expect the sector to maintain its momentum, citing steady volume growth and margin recovery as input costs stabilize.
From an FMCG perspective, the market’s performance signals a favorable environment for established brands and agile players capable of capitalizing on consumption trends. As the sector navigates election-driven shifts and macroeconomic signals, strategic pricing, rural reach, and innovation in product portfolios will be key differentiators in sustaining investor interest.