In a clear sign of how defensive traders had become in a volatile week, Nifty FMCG index rallied 4.76% and Nifty IT index 2% even as other sectoral indices ended lower. After underperforming the benchmark indices in the last one year, stocks like HUL, Britannia and Nestle sprung back to life last week. ITC was, however, the odd one out.
In today’s special podcast with independent market expert Rajiv Nagpal, we try to find out whether this rally in FMCG stocks is sustainable amid the inflationary pressures.
Welcome to the show Mr Nagpal.
1) Was the massive interest we saw in FMCG stocks last week just because people were looking for a safe haven amid taper fears?
2) Most of these stocks have been underperforming in the last few months. So when the volatility eases, do you think this rally will also take a break?
3) How comfortable are you with valuations in the pack? Besides, there is also input cost pressure on these companies.
4) And what about ITC? Despite having an inexpensive valuation and a good dividend yield, the stock doesn’t seem to be moving up at all even when FMCG stocks are in demand.
Thank you Mr Nagpal. That’s all in today’s special podcast. But do keep checking this space for more such interesting content. Good bye!
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