Pare expectations from FMCG stocks amid economic slowdown: Analysts

Consumer index underperformed the broader indices in November as investors looked at alternatives

Moderation in volume growth for the third consecutive quarter and high valuations seem to be catching up with the listed FMCG pack that has underperformed the broader markets in the past month. While the Nifty FMCG index has shed over 3 per cent, the Nifty50 has gone up around 2 per cent during the same period. 

The performance of Nifty 50 constituents shows that the gains in the last one month were entirely driven by non-FMCG players, such as State Bank of India (up 22 per cent), Bharti Airtel (up 23 per cent), and Grasim Industries (up 10 per cent).

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