Naveen Trivedi, AVP-institutional research at HDFC Securities, on Friday, said that the fast-moving consumer goods (FMCG) space is now seeing stability.

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The FMCG index hit a record high and crossed the milestone 40,000-mark yesterday, September 2. The index has rallied over 12 percent in the last one month.

“Now the sector is more stable, and categories which have seen more impact like the discretionary side should expect a recovery in demand. Therefore, we continue to like the sector and believe that growth rates are in the linear phase and can give relative valuation outperformance also,” Trivedi said, in an interview to CNBC-TV18.

Also Read: FMCG index hits record high: Key triggers behind the move

On top picks, he said, “Within our coverage universe, we continue to like stocks like Dabur, Godrej Consumer Products, Marico, as they are continuously focusing on distribution and new product launches. So the core strength will play out in the coming quarters.”

Also Read: Indian FMCG industry clocks 37% value-based growth in Q1FY22: Report

He further said that the firm is also positive on liquor stocks including United Spirits and Radico Khaitan.

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(Edited by : Dipika Ghosh)