FMCG stocks badly hit amid war

HOPES OF ANOTHER round of US-Iran talk gave a brief breathing space for the domestic fast-moving consumer goods (FMCG) space on Wednesday, but the pack remains one of the most beaten-up sectors of the West Asia crisis.

- ANJANA THERESE ANTONY

As things stand, FMCG’s defensive tag has taken a beating during these volatile times. And it is also expected to remain one of the major laggards at least for the near-to-medium term.

Since the end of February when the war in West Asia began, the Nifty FMCG index fell 7%, more than the 5% fall of the Nifty 50. Similar was the case with the year-to-date performance, with the sectoral index falling more than 14% when the benchmark index was down almost 9%. The sector has seen muted performance at least over the last one year — be it earnings growth or equity returns.