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    FMCG stocks go high as crude prices go down

    FMCG stocks go high as crude prices go down

    FMCG stocks go high as crude prices go down
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    By CNBCTV18.com  IST (Updated)

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    Since last month, the FMCG stocks have been gaining after a consistent underperformance in the past with the index correcting about 14 percent from the highs.

    Stocks of fast-moving consumer goods (FMCG) firms rose on Wednesday as the Street saw the sharp decline in the oil prices to below $100 per barrel as a positive for the sector.
    At closing, barring Britannia, shares of Hindustan Unilever (HUL), Godrej Consumer, Nestle India, Dabur, and Marico among others settled higher by up to 1.9 percent. Biscuit maker Britannia's stocks corrected by 0.3 percent.
    Brent crude futures dropped 68 cents, or 0.7 percent, to $98.81 a barrel. The price of US West Texas Intermediate crude fell 72 cents, or 0.8 percent, to $95.12, its lowest level in three months.
    Largely considered a safe bet, the FMCG stocks have been gaining since last month, shrugging off the underperformance that marked the sector late last year. The stock corrected about 14 percent from the highs of last October.
    Market experts see a good scope in the consumer discretionary space within the FMCG sector.
    Pankaj Murarka, founder of Renaissance Investment Managers, told CNBC-TV18 they were more excited about consumer discretionary.
    "We think discretionary spending will not be impacted despite significant price hikes because the middle- and high-income consumers are fairly resilient. So we are more excited about consumer discretionary names versus consumer staples,” Murarka said.
    The two-year underperformance in the FMCG sector has sobered valuations and as the 'risk off' sentiment picks up in other sectors, investors are likely to turn towards these stocks for safe bets as usual.
    Check out our in-depth Market Coverage, Business News & get real-time Stock Market Updates on CNBC-TV18. Also, Watch our channels CNBC-TV18, CNBC Awaaz and CNBC Bajar Live on-the-go!
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