Shares of the consumer-oriented stocks are likely to continue their dream run in 2018 as well. That's according to brokerage CLSA which expects to see a pick up in demand and sentiment this year.
In 2017, the NSE Nifty FMCG Index posted its best performance in five years despite GST-led disruptions.
After a challenging last year, we expect 2018 to witness a pick up in demand driven by recovering consumer sentiment, a supportive base, lower prices following GST (Goods and Services Tax) rate cuts and return to normalcy for channels.CLSA Research Report
“The margins of these companies are likely to sustain, led by price hikes, premiumisation, cost savings and volume recovery despite a concern in the rise in oil prices and related derivatives.”
Besides, the brokerage house is also confident on the sector's performance in rural India, given the rising government expenditure and 2019 general elections.
Also Read: These 12 Stocks Made It To CLSA's 2018 India Outlook
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