New Delhi, May 31 -- The fast-moving consumer goods (FMCG) sector is seen as a favourite among investors due to its stable cash flows and performance even in turbulent times.

But recently, FMCG companies have been facing a new wave of margin pressure. From rising input costs to subdued demand, multiple forces are compressing the profitability for companies, and the markets are taking notice.

Market acknowledgement of this fact is reflected in the performance of the FMCG index. Looking at the broader markets over the past year, the Nifty FMCG index rose 0.96% as compared to a 9.06% increase in the Nifty50.







Here's a closer look at why FMCG stocks are under margin pressure right now.

At the core of the problem is cost inflation. Sh...