Investors exit defensive FMCG segment

Investors are exiting the defensive FMCG segment for want of more alpha in their stock portfolios. According to analysts, investors, who until now, took refuge in steady FMCG stocks are now exiting at higher levels and buying key IT, infrastructure and banking stocks.

At 1 pm, HUL, ITC, Marico et al were trading Rs 0.5 to Rs 1.5 lower than the price at opening session.

"We are neutral on ITC and HUL as these stocks are no longer looking cheaper in value vis-a-vis the broader market. Among FMCG midcaps, Marico, GlaxoSmithkline Consumer and Dabur India looks good buy at current levels," said Angel Broking's FMCG analysts Anand Shah.

"We've are very positive about FMCG sector; cooling crude and commodity prices, reduction in transport charges and a buoyant rural economy will benefit FMCG companies greatly," Mr Shah added.