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    Hopes of rural recovery is good news for FMCG sector: 3 stocks with up to 26% upside potential

    Synopsis

    Prospects of improvement in rural demand led by falling inflation and declining input costs to support the performance of FMCG stocks.

    The FMCG sector has been facing pressure over the past few quarters due to a jump in input costs, higher inflation, weak rural demand and high-cost inventories. Growth in volume remained subdued and most of the growth that the sector has seen in the recent past was driven by value. The effective pricing power and strategies like grammage reduction have helped the Nifty FMCG index to outperform the Nifty 50 index in the past one year. The FMCG
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    The Economic Times