A Quantitative Study on Risk and Return of Leading FMCG Stocks with Reference to Nifty50

The Fast-Moving Consumer Goods (FMCG) sector plays a vital role in the Indian economy, offering consistent consumer demand and investment opportunities. However, despite being considered a relatively stable sector, FMCG stocks exhibit varying degrees of risk and return based on market conditions. This study analyzes the risk-return profile of three leading FMCG stocks—Hindustan Unilever Limited (HUL), Indian Tobacco Company (ITC), and Nestlé India—over a 24-month period from March 2023 to March 2025. Using secondary data, the research employs statistical tools such as mean return, standard deviation, skewness, kurtosis, and beta to evaluate volatility and market sensitivity. The findings reveal that Nestlé India provided the highest average return with moderate risk, while ITC exhibited high volatility but offered substantial upside potential. HUL, on the other hand, showed slightly negative returns and frequent downside movements. The study concludes that a quantitative assessment of risk and return is essential for informed investment decision-making, particularly in sector-specific stock selection and portfolio management