Nifty FMCG emerged as the top sectoral gainer in a negative market, gaining over two percent, while index constituents such as Colgate-Palmolive, Marico, and Godrej Consumer Products led the gains.
The sharp uptick in the FMCG index was resultant of brokerage firm CLSA noting that the consumer staples sector is brokerage's biggest anti-consensus call for 2025.
CLSA had turned the consumer staples into its largest 'overweight' sector in its India portfolio, after avoiding it for four percent. CLSA's Vikash Kumar Jain, in an interaction with CNBC-TV18, said that the Hong Kong-based brokerage pared its 'overweight' stance on banks and commodities.
Further, domestic brokerage Ambit Capital maintained its buy rating on Marico and Tata Consumer, adding to the bullish sentiment.
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Vikash Kumar Jain added, "Staples, I believe that that's really the big sector call which we have taken very anti consensus. The kind of underspend that we have seen on government capex, both at the state level and the central level, I think that is also maybe hinting us on government’s changing priorities. If that happens, the investment and the capex linked stocks are already over excited and at elevated valuations."
"That's why we believe that the realities of coalition government and the hints that we have got from recent state elections, plus the good rainfall that we have seen and the good sowing that we have seen, maybe just bring back that affordable consumption to kind of life and within staples, we like the food related companies more," he further said.
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