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Open
55580.3
Prev. Close
55681.65
| Company | Market Cap | Market Price | Sector |
|---|---|---|---|
25,000.54 | 572.75 -12.70 (-2.17%)▼ | FMCG | |
1,71,989.64 | 508.55 -7.45 (-1.44%)▼ | FMCG | |
94,759.27 | 1,302.80 -8.50 (-0.65%)▼ | Alcoholic Beverages | |
93,156.40 | 717.75 -4.65 (-0.64%)▼ | Edible Oil | |
65,244.31 | 1,799.30 -6.40 (-0.35%)▼ | Edible Oil |
What is the Nifty FMCG?
The Nifty FMCG index is designed to represent the performance of companies engaged in the Fast-Moving Consumer Goods (FMCG) sector. This includes businesses involved in the production and distribution of essential goods such as food, beverages, personal care, cleaning products, and tobacco. The index comprises 15 of the largest and most liquid FMCG companies listed on the NSE.
FMCG is considered a defensive sector, offering relative stability during market downturns due to consistent consumer demand. As a result, the Nifty FMCG index is often preferred by conservative investors or those seeking portfolio stability with steady returns. The index serves as a benchmark for sectoral mutual funds and ETFs that invest in FMCG companies. It reflects both urban and rural consumption trends in India and is highly sensitive to changes in disposable income, inflation, and consumer preferences. With the Indian middle class expanding and consumption rising, the Nifty FMCG index provides long-term growth potential anchored by consistent demand.
Nifty FMCG selection criteria
The Nifty FMCG index selects its 15 constituents from the Nifty 500 universe. Eligible companies must be classified under the FMCG sector and meet the minimum criteria for liquidity and market capitalisation. Selection is based on the average free-float market capitalisation and average daily turnover over a six-month period. Stocks must also have a consistent listing and trading history, ensuring stability and reliability.
The index is reviewed semi-annually in March and September to ensure relevance and accuracy. The sectoral classification is provided by AMFI and other market-recognised authorities. Only the top performers in terms of size and tradability are included, offering a clear and focused representation of India’s FMCG industry.
How is the Nifty FMCG index calculated?
The Nifty FMCG index follows the free-float market capitalisation-weighted methodology. This means the weight assigned to each stock is proportional to its market capitalisation, excluding promoter and other strategic holdings. The index has a base date of January 1, 1996, and a base value of 1000. It is calculated and updated in real-time during trading hours using the current market prices of its constituents. The index is reviewed and rebalanced semi-annually to accommodate shifts in market cap, liquidity, or corporate actions. NSE Indices Ltd manages the calculation and maintenance. The use of the free-float method ensures the index reflects the actual investable market and remains a practical benchmark for institutional and retail investors alike.
Nifty FMCG FAQs
How to invest in the Nifty FMCG?
You can invest through FMCG-focused mutual funds or ETFs that replicate the Nifty FMCG index. These are available on most investment platforms and brokerage accounts.
What is the objective of the Nifty FMCG?
The objective is to track the performance of the top FMCG companies in India, offering exposure to consistent and essential consumption-driven businesses.
Factors that can impact performance of the Nifty FMCG index
Inflation, rural and urban demand shifts, raw material prices, input cost pressures, and changes in consumption behaviour can influence performance.
Is investment in the Nifty FMCG safe?
FMCG is considered a defensive sector, making it relatively safer during market volatility. It is, therefore, suitable for conservative investors seeking stability and moderate returns.
Benefits of investing in the Nifty FMCG
It provides exposure to resilient and cash-generating businesses, offers stable performance in downturns, and captures India's growing consumption economy.