Consumer good stocks such as Hindustan Unilever rallied as investors switched to defensive stocks ahead of key risk events including the start of earnings season this week and the Reserve Bank of India policy meeting on April 17.
The BSE’s consumer goods sub-index rose 1.7 per cent,after earlier hitting a record high,continuing a rally that saw it gain 7.8 per cent in March compared to a nearly 2 per cent fall in the broader BSE index.
FMCG seems to be the only space which seems safe because of less government intervention and policy inaction said Vivek Mahajan,head of research at Aditya Birla Money,referring to Fast Moving Consumer Goods,the official name of the sub-index.
Hindustan Unilever rose 2.3 per cent and ITC gained 2.3 per cent,while Nestle India rose 4.4 per cent.
The gains well outperformed the broader indexes,with both the BSE and NSE indexes down about 0.1 per cent each.