ITC

The FMCG sector continues to behave as a defensive space amid market volatility, but recent developments suggest a gradual shift towards volume-led growth and improving demand outlook. What’s Happening in FMCG: • Sector witnessing steady demand supported by strong domestic consumption trends • Rural demand remains resilient while urban demand is gradually improving • FMCG companies increasingly acquiring D2C brands to capture changing consumer preferences • Easing commodity costs expected to support margins going forward Growth Outlook: Industry estimates suggest FMCG growth may move towards ~5% in 2026 with stable consumption recovery and better pricing power. Companies are focusing more on volume growth rather than aggressive price hikes. Market Behaviour: Despite being a defensive sector, FMCG stocks recently saw pressure during broader market declines, showing that sector rotation continues based on global cues and risk sentiment. Key Stocks to Watch: HUL | ITC | Nestlé India | Varun Beverages | Britannia | Tata Consumer Trader’s Takeaway: FMCG may not always deliver sharp momentum moves, but it often provides stability during volatile markets and becomes attractive during risk-off phases. Not a buy/sell recommendation. Shared for learning & discussion purposes only.