Why FMCG stocks could be the most attractive space to invest for next few years
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Consumer stocks haven't quite matched up to the hype after the Budget, post which these names were widely accepted to benefit from tax relief provided by Finance Minister Nirmala Sitharaman. Data from Ace Equity shows that 50 out of 75 stocks, across market caps, delivered negative returns in the last one month. However, FMCG stocks were only victims of the wider negative forces at play in the Indian market. Most stocks are currently in a corrective phase, driven by exodus of foreign investors and global uncertainties. For instance, FIIs offloaded over Rs 6,000 crore worth of consumer stocks in February. If we take the last five months data, 67 out of the 75 stocks are trading in negative. This only proves the theory that FMCG and other consumption stocks were part of the broader slump in equities. To accurately assess the impact of the budget announcement on the consumption sector, we may have to wait until the June quarter, when the...