It would be an understatement to say consumer stocks are out of favour. With foreign investors continuing to churn their portfolio in favour of cyclicals, consumer stocks have been beaten down. The BSE FMCG Index has fallen five percent since 1 April, while the Sensex has risen 13 per cent. High valuations and weak growth have not helped the sector’s outlook either. Listed FMCG stocks are trading at 25x its FY16 earnings.
(Source: Business Standard)