FMCG stocks surge; HUL, ITC hit record highs

Fast moving consumer goods (FMCG) shares such as Hindustan Unilever rose to record highs as investors are lured by growth prospects and their more defensive nature in an uncertain market environment.

Hindustan Unilever ended with gains of nearly 10 per cent after hitting an all-time high of Rs 699.35 while ITC rose 2.31 per cent, marking its record high at Rs 370.40.

United Spirits Ltd gained 0.61 per cent after touching an all-time high of Rs 2739.35, while Dabur India Ltd ended up 4.18 per cent after earlier hitting its record-high at Rs 167.90.

Rajiv Jain whose $9 billion Virtus Emerging Markets Opportunities Fund holds stakes in ITC, HUL, told Reuters in an interview that he shares concerns about India. However, his bets are mainly consumer products firms as they generate some of the fastest earnings growth in the world on the back of a growing middle class.

"These are expensive defensives. Tactically there may be more upside but caution should be exercised at such levels," said G Chokkalingam, executive director and chief investment officer at Centrum Wealth Management.

Copyright: Thomson Reuters 2013