There’s good news for people who invest in consumer companies! Many experts are saying it’s time to buy stocks in this area after the recent Budget showed a commitment to help taxpayers, putting Rs 1 lakh crore into their hands. This extra money will likely make people buy more things, especially in the areas of food, clothes, and household items.
The Income Tax department believes that with these changes, many families will have more money to spend. According to Nomura, this could lead to a nice boost in how much people can spend each month. More money means people may eat out more, buy new gadgets, or even travel.
Right now, the Nifty FMCG index (focusing on fast-moving consumer goods) has dropped around 19% from its highest points last year. This includes stock names like Colgate-Palmolive, Britannia, and Dabur. Even though companies are struggling with their earnings right now, there’s hope that consumer stocks can keep the market steady in the future.
The Budget not only benefits people living in cities but also helps those in rural areas by increasing job opportunities and supporting farming and infrastructure projects. This means companies that sell goods in rural places may see a rise in demand.
Looking beyond just the Budget, many believe that consumer stocks are ripe for a comeback after a tough few years. Investor interest in these stocks has been at its lowest in quite some time. According to Elara Securities, there’s a shift happening in the market that favors quality investments again, and that includes consumer goods.
Experts like Nomura believe that sectors like jewelry, food delivery, and travel will benefit the most, while companies selling everyday items will also see improved sales. Motilal Oswal is focusing on companies like Trent, HUL (Hindustan Unilever), and Titan as good picks.
Many firms, like YES Securities and SBI Securities, have identified specific consumer stocks that are likely to gain. They include popular brands such as HUL, Dabur, and Indian Hotels.
Overall, this looks like a good time for investing in consumer goods to take advantage of the expected rise in spending among everyday people.
Disclaimer: The opinions and recommendations shared here are those of experts and do not reflect the views of Niftystat
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