Sensex dives 4,000 pts: Why are investors flocking to FMCG shares
If the INDIA alliance comes to power, rural demand revival will get a boost, supplemented by freebies. Key stocks to watch Hindustan Unilever (HUL), Dabur India, Emami Ltd, Marico Ltd, GCPL, Britannia and Varun Beverages, analysts said.
- Jun 4, 2024,
- Updated Jun 4, 2024 11:38 AM IST
On a day, the BSE benchmark Sensex dived 4,000 points and sectoral indices such as the BSE Capital Goods, the BSE Power and the BSE Oil & Gas crashed up to 7 per cent, defensive shares of FMCG stocks advanced, as data showed the INDIA alliance was giving a strong fight to the incumbent BJP and its NDA alliance.
Shares of Hindustan Unilever climbed 2.87 per cent to Rs 2,422.50. Dabur India Ltd advanced 1.51 per cent to Rs 553.15. Colgate-Palmolive Ltd added 1.46 per cent to Rs 2,724.75. Marco jumped 1.42 per cent to Rs 549.35. Britannia Industries shares were flat at Rs 5,189.50.
Prabhudas Lilladher in a recent note suggested that if the INDIA alliance comes to power, rural demand revival will get a boost, supplemented by freebies. Key stocks to watch Hindustan Unilever (HUL), Dabur India, Emami Ltd, Marico Ltd, GCPL, Britannia and Varun Beverages, it noted.
Key promises made by the Congress in their election manifesto include Rs 1,00,000 ($1200) per year to one woman in each of the poorest families under the Mahalaxmi Scheme as an unconditional cash transfer, UBS noted in a recent note.
Besides, Congress talked about legal guarantee to minimum support prices (MSPs), as recommended by the Swaminathan Commission. UBS said this could increase the existing food subsidy bill by 25 per cent YoY if implemented.
INC's manifesto talked about job creation and proposal to enact 'Right to Apprenticeship Act' for youth below 25 years with Rs 1,00,000 ($1,200) annual stipend.
Meanwhile, "Most climate models indicate a transition to La Niña around July-September 2024. La Niña may develop during JuneAugust 2024 (a 49 per cent chance) or July-September (a 69 per cent chance). This bodes well for sectors that are rural demand-centric and agriculture-oriented. We prefer Godrej Consumer Products, Marico and Mrs. Bectors within the Consumer Staples space and Dhanuka Agritech, which we deem a proxy play on the agrochemicals demand, among the rural & agri-focused sectors," Elara Securities said.
On a day, the BSE benchmark Sensex dived 4,000 points and sectoral indices such as the BSE Capital Goods, the BSE Power and the BSE Oil & Gas crashed up to 7 per cent, defensive shares of FMCG stocks advanced, as data showed the INDIA alliance was giving a strong fight to the incumbent BJP and its NDA alliance.
Shares of Hindustan Unilever climbed 2.87 per cent to Rs 2,422.50. Dabur India Ltd advanced 1.51 per cent to Rs 553.15. Colgate-Palmolive Ltd added 1.46 per cent to Rs 2,724.75. Marco jumped 1.42 per cent to Rs 549.35. Britannia Industries shares were flat at Rs 5,189.50.
Prabhudas Lilladher in a recent note suggested that if the INDIA alliance comes to power, rural demand revival will get a boost, supplemented by freebies. Key stocks to watch Hindustan Unilever (HUL), Dabur India, Emami Ltd, Marico Ltd, GCPL, Britannia and Varun Beverages, it noted.
Key promises made by the Congress in their election manifesto include Rs 1,00,000 ($1200) per year to one woman in each of the poorest families under the Mahalaxmi Scheme as an unconditional cash transfer, UBS noted in a recent note.
Besides, Congress talked about legal guarantee to minimum support prices (MSPs), as recommended by the Swaminathan Commission. UBS said this could increase the existing food subsidy bill by 25 per cent YoY if implemented.
INC's manifesto talked about job creation and proposal to enact 'Right to Apprenticeship Act' for youth below 25 years with Rs 1,00,000 ($1,200) annual stipend.
Meanwhile, "Most climate models indicate a transition to La Niña around July-September 2024. La Niña may develop during JuneAugust 2024 (a 49 per cent chance) or July-September (a 69 per cent chance). This bodes well for sectors that are rural demand-centric and agriculture-oriented. We prefer Godrej Consumer Products, Marico and Mrs. Bectors within the Consumer Staples space and Dhanuka Agritech, which we deem a proxy play on the agrochemicals demand, among the rural & agri-focused sectors," Elara Securities said.