Rupee weakness weighs down FMCG stocks, but shot in arm for IT pack

The recent plunge in the rupee has taken the fizz out of consumption stocks, which are known to trade at premium valuations. Some reasons for high valuations, according to analysts, are easy global liquidity, stable currencies, and high earnings growth in local currency terms. However, the recent developments have reversed all these trends, triggering a sharp re-rating in shares of fast moving consumer goods (FMCG) firms. Between April and August, the BSE FMCG index rose 25 per cent, outperforming the 16 per cent returns by the benchmark Sensex. So far in September, the index has l.....

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