Ahead of the upcoming festive season, shares of two FMCG firms Adani Wilmar Ltd and Patanjali Foods Ltd were locked in the upper circuit today on the expectations of a boost in demand for their products.

The Adani Wilmar stock opened at ₹738.05 and touched an intraday high of ₹770.05, up 5%. The stock, which has risen 6.79% during the past two days, outperformed the sector by 4.41% and hit nearly a four-month high. Trading higher than 5-day, 20-day, 50-day, 100-day and 200-day moving averages, Adani Wilmar's market cap also crossed ₹1 lakh crore today.

The FMCG stock has performed exceptionally well recently and has given a 6.25% return in the past month; 96.72% in the past six months; and 186.92% in the year-ago period. It touched a 52-week high of ₹878.35 on April 27, 2022.

In contrast, the BSE benchmark Sensex rose 0.98% or 578 points today to 59,719.74, while Nifty 50 gained 1.10% to 17,816.25. Yoga guru Baba Ramdev-led Patanjali Foods (earlier known as Ruchi Soya) also touched the upper circuit as the stock closed 5% up at ₹1,401.45.

Adani Wilmar, a 50:50 joint venture between billionaire Gautam Adani-led Adani group and Singapore’s Wilmar group, had cut cooking oil prices by up to ₹30 per litre to pass on the benefit of falling global prices to its consumers. Before that, the company, which sells products such as Fortune, King's, Bullet, Raag, had cut edible oil prices by up to ₹10 in June.

On the other hand, the shares of Patanjali Foods, which outperformed the sector by 0.58% today, gained after 5 days of consecutive fall. The stock touched its 52-week high of ₹1,415 on September 12, 2022. Now it's just 0.97% away from its 52-week high. Patanjali Foods is trading higher than 5-day, 20-day, 50-day, 100-day and 200-day moving averages.

On the back of the demand rise in FMCG products in the coming days due to festivals, both of these stocks could see a further rise, say analysts.

Patanjali Foods Stock

Adani Wilmar, Patanjali Foods hit upper circuit; here’s why