FMCG's domestic focus attracts investors as Trump tariffs make markets volatile

Jyothy Labs shares also recorded strong gains, closing nearly 8 percent higher at Rs 370 apiece.

The FMCG sector's defensive nature and domestic demand makes it an attractive bet for investors amid times of uncertainties, especially at a time when the markets are turning volatile owing to US President Trump's reciprocal tariffs triggering a trade war and recession fears.

Additionally, RBI Governor Sanjay Malhotra on April 9 announced that the central bank’s Monetary Policy Committee (MPC) has reduced its Consumer Price Index (CPI) inflation projection to 4 percent from its earlier 4.2 percent for FY26. RBI also cut its repo rate by 25 bps to 6 percent.

Narinder Wadhwa, Managing Director & CEO of SKI Capital said, "From a macroeconomic perspective, a rate cut could put downward pressure on the rupee, particularly if foreign investors continue pulling out of emerging markets. A weaker rupee, while supportive for IT and pharma exports, may also stoke imported inflation…Export-heavy sectors like manufacturing may see mixed effects: domestic easing may help margins, but global trade disruptions could reduce orders. Defensive sectors like FMCG might again gain favour if volatility remains elevated."

Sankar Chakraborti, MD & CEO of Acuité Ratings & Research said, "The MPC's decision to front-load support to domestic growth, especially for our domestic growth drivers, which might be affected by tariffs such as the MSMEs, is a welcome move. By leaning into the window of disinflation, the RBI is aiming to cushion the economy from external shocks and sustain the momentum in consumption and investment recovery."

Disclaimer: The views and investment tips expressed by experts on Moneycontrol are their own and not those of the website or its management. Moneycontrol advises users to check with certified experts before taking any investment decisions.