By Malvika Gurung
Investing.com -- The domestic market opened higher on Wednesday and continued its momentum in the session, with the 30-scrip benchmark index Sensex surpassing the key 60,000 mark for the first time since April 5.
Adding to the optimistic mood on Dalal Street, the sectoral index Nifty FMCG scored a new lifetime high at a 43,326.65 level on Wednesday, thanks to ease in commodity prices and the upcoming festive season.
Market experts have stated that ebbing commodity prices, driven majorly by cooling prices of palm oil , along with the quickly approaching festive season in the country, here to stay for the next 2-3 months, have pushed the Nifty FMCG index to a record high.
The sectoral index has surged about 15% YTD, significantly outperforming headline indices Nifty50 and Sensex, up 1.65% in the period.
Sumeet Bagadia of Choice Broking expects the FMCG index to continue its rally and even touch the 43,500-44,000 levels in the short term. He advises positional investors to maintain 42,500 as strong support for the index and consider any dips from the current levels as an opportunity to buy.
In the 15-scrip index, shares of mega-caps ITC (NS: ITC ) and Hindustan Unilever (NS: HLL ) together make up around 55% of Nifty FMCG’s overall strength. As the two stocks are in an uptrend lately, they are expected to fuel the rally in the sectoral index over the upcoming months.
Bagadia expects an up to 6% upside in ITC and HUL shares in the short term and advises positional investors to buy the two stocks, noted a Mint report.
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