Banking and FMCG Stocks Drive Sixth Straight Market Rally
Indian equity markets extended their winning streak into a sixth consecutive session on Monday, with the FMCG and banking sectors emerging as key drivers of the rally. The benchmark BSE Sensex rose by 560 points to close at 73,648.62, while the NSE Nifty50 gained 190 points to end at 22,336.40.
FMCG giants led the charge, bolstered by strong buying interest ahead of the voting commencement for the 2024 Lok Sabha elections. Britannia Industries, ITC, and Hindustan Unilever saw notable gains, reflecting renewed investor confidence in consumer-facing businesses amid favourable macroeconomic signals and rural demand recovery.
Among Nifty50 components, HUL, Nestlé India, and Dabur were among the top performers, each posting strong intraday movements. Analysts attribute this uptick to expectations of robust Q4 earnings, easing inflationary pressures, and optimism over the upcoming monsoon season—a key trigger for rural consumption and FMCG volume growth.
The broader market also witnessed significant buying interest, with the Nifty FMCG index climbing 1.5% during the session. Market participants are increasingly anticipating a consumption rebound in the second half of 2024, which could offer sustained momentum for FMCG players targeting both urban and hinterland markets.
Banking stocks also contributed to the rally, with gains in ICICI Bank, HDFC Bank, and Kotak Mahindra Bank. The financial sector’s stability is seen as a positive signal for credit-led growth, which could further support discretionary FMCG categories such as personal care and packaged foods.
As the Lok Sabha elections approach, investors are eyeing political and policy continuity, which markets typically interpret as favorable for economic momentum and corporate earnings growth. The prevailing sentiment ahead of the polls has created a bullish undertone in consumer and banking stocks, positioning FMCG among the front-runners should the economic outlook remain stable.
Looking ahead, FMCG professionals and brand leaders will be closely watching the rural demand trajectory, raw material cost trends, and the monsoon forecast—all of which could significantly influence consumer spending patterns and category performance in Q2 and beyond.