Key points from this report:
- Although the Indian market was shifted back to a Confirmed Uptrend from an Uptrend Under Pressure last week, we maintain a cautious view on Indian Staples.
- The sector is showing decelerating short-term momentum and, in fact, has been continuously lagging the market in the past year due to the threat of a double whammy of a fall in consumption demand and inflationary trend in input costs.
- We recommend four names that have the leading characteristics and resilient profiles to face this challenging time: Radico Khaitan (RKT.IN), Tata Consumer Products (TEA.IN), Emami (EML.IN), and Varun Beverages (VB1.IN).