FMCG Correction!

am expecting further fall. Not because am bearish on the only because the speed at which it went up. Almost every stock, take any random one, have moved up 2 or 3 times since march'23. We may be a good promising economy , but we are not that good.

Watch any News channel/finance sites, every economist and finance guy would say that Indian economy is great and set to become bigger. So, you can take it as a proof that the economy is set to enter turbulent times. But this is not the reason for the market fall or rise. The stock markets performance should not be viewed from the standalone economic POV. Indian economy should do better compared to other economies. India growing at 6%, But China growing at 4%, means money would goto China not India. As the volumes in China are multifold higher, so profits are bigger. Money flow into the market decides the stock market movement. the last 3 years, money meant for China, moved into India and market went up. How much money was originally meant for China and the amount of profit FII made in India during the last 3 years, will decide How much more fall will happen.

To cut cost FMCG companies always reduced the quantity instead of raising cost. Any further cut in Qty would simply mean giving us empty plastic cover for the same price.

We are not even close to the bottom.