The world is in the middle of myriad disruptions caused by various points of economic or diplomatic confrontations. From the ever-escalating tension and war in the Middle East to confrontations in Ukraine, reasons for trade disruptions are in abundance.
US Port Worker Pick The Picket
In addition to all this, we now have another consequential event transpiring. This came to pass as thousands of dockworkers went on strike for an indefinite period at ports across much of the US. This threatens to push trade and economic activities into disarray.
FMCG Shares Drop
This strike came to occur as the contract between involved parties expired on Monday. In a nutshell, although this disrupts various facets of the trade that are associated or reliant on the system, perishables and other Fast Moving Consumer Goods (FMCG).
The effect of the strike that started has already started trickling, with it even apparently reaching the Indian shores. On Thursday, October 3, major FMCG companies listed on the equity markets saw their prices decline. Although the ancillary and individual factors cannot be discounted, the overall trend is visible.
When we look at the shares of some of the biggest names in the Indian markets, the trend becomes clearer.
Nestle India Limited
The Indian arm of the renowned Swiss brand was sharing in red at the time of writing. Nestle India shares declined by 1.39 per cent or Rs 37.60, in the intraday trade on the day.
This took the overall value of the stock to Rs 2,669.45 per individual share.
Dabur India Ltd
Ghaziabad-based Dabur India is one of the most known FMCG brands in the country. The company saw a mammoth decline of over 5 per cent in the early hours of the intraday trade. As per reports, this development is being attributed to the anticipations of a decline in the overall company revenue in the upcoming Q2 earnings call.
However, this acquiesces the trend of FMCG decline. At the time of writing, the company shares dropped by a colossal 6.30 per cent or Rs 39.00. This took the overall value to Rs 580.00, taking the value of shares to the marquee number of Rs 600.
Britannia Industries Ltd
Britannia Shares also suffered, with a decline of 1 per cent in the intraday trade. On Thursday, at 11:26 IST, the company shares dropped by 1.10 per cent or Rs 70.85.
This took the overall value of the shares to Rs 6,375.20.
Varun Beverages Ltd
Although the company does not necessarily work with easily perishable goods, the company’s prime business revolves around bottling and packaging beverages, including its biggest client, Pepsico.
The company shares dropped by a significant 2.86 per cent or Rs 17.50. This took the overall value of individual share price to Rs 594.75.
Godrej Consumer Products Limited
When it comes to Godrej Consumer Products, this FMCG company also saw its shares decline.
This meant a decrease of 2.36 per cent or Rs 32.70, taking the overall value of the shares to Rs 1,355.40 per individual piece.
The United States administration has claimed that it intends to introduce speedy redressal to the matter. The strike, which is regarded by many as monumental, is orientated over a master contract that spans six years and employs over 25,000 port workers in container and roll-on/roll-off operations. This in turn would boost health care alternatives, triple employers’ payments to pension programmes, and increase wages by about 50 per cent.
