![HUL shares rally over 16% in 2 days amid defensive buying; Jefferies sees upside potential of 10%](https://img.etimg.com/thumb/msid-110725552,width-210,height-158,imgsize-29242,resizemode-75/hul-shares-rally-over-16-in-2-days-amid-defensive-buying-jefferies-sees-upside-potential-of-10.jpg)
“Surprise election outcome makes us believe that govt will likely adopt a more favourable policy towards consumption, especially rural/BOP. This comes at a time when a few cos are pointing to an expected pickup in rural, which augurs well for HUL,” said Jefferies on its upgrade on the stock.
On Wednesday as well as Tuesday, the FMCG index staged a strong performance, with HUL taking the lead on both days.
“Our markets have seen high volatility in the last few days because of the mega event (election results). However, in such volatile time, the FMCG space has shown relative strength and stocks such as HUL, Britannia and Dabur are showing relative outperformance. Traders can look to buy HUL within this sector from a near-term perspective,” said Ruchit Jain, Lead Research at 5paisa.com.
Along with HUL, stocks like Dabur India, Emami, Marico, Britannia Industries and Godrej Consumer Products among others in the category displayed significant up-moves, going as high as 15%.
Further, with the BJP set to form the government without a simple majority, the future outlook remains unclear as there are multiple scenarios that might unfold given the formation of a coalition government.
Based on these developments, a report by Axis Securities states the volatility in the domestic market is likely to remain on the higher side for some time. Against this backdrop, the market positioning is likely to shift towards quality and low volatility stocks with some tilt towards defensive names.
Hence, HUL and Nestle among other stocks are recommended by Axis Securities for a horizon of 12-18 months.
Also read: CLSA tweaks India portfolio, fears de-rating in expensive capex stocks
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)
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(What's moving Sensex and Nifty Track latest market news, stock tips, Budget 2024 and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .)
Subscribe to The Economic Times Prime and read the Economic Times ePaper Online.and Sensex Today.
Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price