Abneesh Roy, Executive Director of Nuvama Institutional Equities, has identified Hindustan Unilever Ltd (HUL) and Colgate-Palmolive India as potential buying opportunities following a broad sell-off across India's fast-moving consumer goods (FMCG) sector.

The FMCG space in India has witnessed sustained pressure in recent sessions, with investors recalibrating expectations around demand recovery, rural consumption, and competitive intensity. HUL, India's largest consumer goods company by revenue, and Colgate-Palmolive India, a leading oral care manufacturer, are among the prominent names that have seen share price corrections. Roy's view suggests the sell-off may have created attractive entry points for long-term investors in these established household brands. The FMCG sector is widely tracked as a barometer of India's broader consumer demand, and rural markets account for a substantial share of sales for companies like HUL, making rural consumption trends a critical variable for sector performance.

Beyond FMCG, Roy expects a broad-based recovery in the Indian paint sector. He anticipates that Asian Paints, India's largest paint company by market share, will lead market share gains within the industry. The paints sector has faced competitive headwinds in recent periods, with new entrants and aggressive pricing strategies reshaping the competitive landscape. Grasim Industries' entry into decorative paints under the Birla Opus brand has added another layer of competition to a market long dominated by a few established players. Roy's outlook signals confidence in a sector-wide rebound, with Asian Paints positioned at the forefront.

On ITC Ltd, one of India's largest diversified conglomerates with businesses spanning cigarettes, FMCG, hotels, paperboards, and agribusiness, Roy maintains a constructive long-term stance. While acknowledging near-term weakness in the stock, he remains positive on ITC's fundamental trajectory over an extended horizon. ITC's ongoing demerger of its hotels business into a separate listed entity represents a broader restructuring effort that investors are monitoring alongside its core tobacco and FMCG operations.

Roy also expressed support for Indian liquor stocks, specifically naming United Spirits, Radico Khaitan, and Allied Blenders & Distillers. United Spirits, a subsidiary of Diageo, is one of the largest beverage alcohol companies in India. Radico Khaitan is a major manufacturer of Indian-made foreign liquor, while Allied Blenders & Distillers is known for its Officer's Choice whisky brand. India's alcohol beverage market remains one of the largest globally by volume, and these companies have been focusing on premiumisation strategies to drive margin expansion.

Addressing the competitive dynamics in quick commerce, Roy emphasized that competition in the rapid-delivery grocery segment is a structural reality that is unlikely to dissipate. Quick commerce platforms in India — including Zomato-owned Blinkit, Zepto, and Swiggy Instamart — have been expanding aggressively, competing with traditional FMCG distribution channels and putting pressure on margins and market share for established consumer companies.

The analysis was shared by Roy on CNBC-TV18, with Mangalam Maloo and Prashant Nair (@_prashantnair) as the contributing journalists. The discussion covered a range of consumer-facing sectors including FMCG, paints, tobacco, and alcohol.

Source: CNBC-TV18 Markets

This article is for informational purposes only and should not be construed as investment advice. Readers should consult certified experts before making any investment decisions.