But the consumption slowdown in the world’s fastest-growing major economy is rubbing the sheen off these shares. The 74-member S&P BSE Fast-Moving Consumer Goods Index, which has had only one down year since 2006, has bucked the gains in the nation’s benchmark measure. Growth for Dabur India Ltd. during the period was 4.3 percent compared with about 8 percent a year earlier. Hindustan Unilever has declined 5.8 percent in 2019, Godrej Consumer 21 percent, Britannia 15 percent and Dabur 11 percent. The slowdown may not be cyclical, according to a separate report by Kotak Institutional Equities, which cites insufficient income growth as the reason for the weak demand.

Source: Mint May 08, 2019 03:22 UTC