The FMCG sector could be headed for a strong re-rating, thanks to a mix of favourable economic signals, according to Anil Singhvi, Managing Editor at Zee Business.
In a market briefing, Market guru Anil Singhvi outlined four key factors that could support a renewed rally in fast-moving consumer goods stocks. These include a rise in income tax exemption limits, falling interest rates, an encouraging monsoon outlook, and potential GST relief on essential products.
“These four triggers are aligning in a way that could significantly boost consumer spending — especially in rural areas,” Singhvi said. “That makes FMCG stocks a compelling bet for medium-term investors.”
To capitalise on this consumption-driven momentum, Singhvi pointed to four mutual funds that are well-positioned to benefit:
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HDFC Non-Cyclical Consumer Fund
SBI Consumption Opportunities Fund
Kotak Consumption Fund
Aditya Birla Sun Life Consumption Fund
All four schemes have concentrated exposure to India’s consumption story — with investments in companies operating across food and beverage, personal care, household goods, and retail.
He also noted that the income tax exemption up to ₹12 lakh, announced in the Union Budget, could help widen the consumer base. Meanwhile, softer lending rates and a healthy monsoon are expected to further stimulate demand in semi-urban and rural pockets.
Lastly, Singhvi said any forthcoming reduction in GST rates could serve as an additional catalyst for earnings upgrades across the FMCG space.
