FMCG sector slowdown: Can consumer stocks stage a comeback?
India TodayWe have all been in situations where our favourite team starts strong, only to falter in the middle overs, leaving us biting our nails about whether they can stage a comeback. Monday’s steep decline in major FMCG stocks—triggered by a subdued outlook from Godrej Consumer Products—has left investors wondering: will the sector recover in Q3, or is this another misstep in its innings? "The FMCG sector is facing the impact of high inflation, as seen in companies like Tata Consumer and Nestle India," Sujit Modi, CIO of Share.Market had said earlier. "Investors need to adopt a cautious approach toward FMCG stocks, given the near-term challenges of weak demand, rising input costs, and subdued growth. While FMCG stocks are traditionally defensive due to their stable cash flows and long-term potential, short-term returns may remain muted, as many stocks are trading at high valuations relative to their earnings growth," said Mishra.
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