UBS said that the consumer sector offers a degree of defensiveness in a market that continues to exhibit low risk tolerance, while also standing to benefit if risk appetite makes a comeback. In one year, Nifty FMCG has gained 4.9 per cent as compared to Nifty50's rise of 8 per cent.
The brokerage has categorised Hindustan Unilever (HUL), Godrej Consumer Products (GCPL), and Dabur as growth turnaround stocks that saw valuation correction on the backdrop of portfolio-specific issues.
The dark clouds engulfing India’s consumer sector seem to be clearing, with global brokerage UBS stating that a "Goldilocks scenario is in the making." The brokerage believes several factors are aligning to support a potential bounce-back, with earnings recovery expected in the current financial year, following a weak performance in financial year 2025 (FY25).
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