New Delhi, Oct. 1 -- The Nifty FMCG index has declined 6% over the past six months, covering the first half of FY27, underperforming the Nifty 50, which fell over 1% during the same period. The sector has faced pressure from weak price momentum, rising input costs and concerns over margins, even as underlying demand and volume growth have started to improve.

With the festive season approaching, analysts expect consumer demand to pick up, but believe the recovery may not be uniform across the sector. Softening raw material prices, improving volumes, and a favourable festive demand environment could support select stocks, while companies facing higher input costs or elevated taxation may continue to see margin pressure.

Brokerages and tec...