Tariff-pause market rally to fuel sector churn: Here're movers and shakers

Investors may shift away from fast-moving consumer goods (FMCG) stocks and turn to battered sectors like information technology (IT), metals, and pharmaceuticals if the tariff-pause rally gathers steam in domestic markets.  Over the past few trading sessions, stocks in globally linked sectors such as IT and metals have slumped by double digits, while auto and pharma stocks have also lagged this month. In contrast, consumer goods stocks have shone, with the Nifty FMCG index rising 3 per cent in April, even as the benchmark Nifty 50 has shed nearly 5 per cent.  “There’s been a clear pivot from export-driven stocks to domestically focused ones. That said, a reversal could unfold as early as Friday,” noted a fund manager.   In a note this week, HSBC advised investors to prioritise stocks with stronger earnings visibility. “With growth concerns lingering and valuations offering little comfort, we favour stocks with high profitability and clear earnings potential, driven by structural growth factors,” the brokerage stated.  Its top conviction picks include Reliance Industries, TVS Motors, Shriram Finance, ICICI Bank and Adani Ports and SEZ. ­­­