Are tobacco and FMCG stocks the new market favourites? Expert explains

Markets saw some action across sectors today, especially in tobacco and FMCG stocks, driven by fresh policy signals and price expectations.

Astha Jain from HEM Securities said the overall mood in tobacco stocks remains positive, supported by both news flow and technical strength.

Godfrey Phillips stood out with strong momentum, backed by rising volumes and price action. The stock has seen a sharp jump recently, and further upside could be possible in the near term, though fresh buying may be better at lower levels, she said.

Jain added that ITC also remained in focus, gaining on multiple triggers. Along with its cigarette business, its paper division could benefit if plastic packaging restrictions come into play. The expert noted that ITC continues to look strong, but advised investors to hold rather than make fresh entries at current levels.

The broader FMCG space is also seeing interest, with stocks like Tata Consumer and Bajaj Consumer showing strength, according to her.

On the aviation side, the view is more cautious, opined Jain. With signs of increased competition and reduced concentration risk, airport stocks such as GMR Airports may face pressure. Investors are advised to avoid fresh positions for now and wait for better entry levels as the sector adjusts to changing dynamics, she said.

(Disclaimer: The views, opinions, recommendations, and suggestions expressed by experts/brokerages in this article are their own and do not reflect the views of the India Today Group. It is advisable to consult a qualified broker or financial advisor before making any actual investment or trading choices.)