Investing.com -- Morgan Stanley reported that its consumer coverage outperformed the Sensex on average in April, with approximately 90% of covered stocks beating the index, compared to 60% in March.
Food and beverage stocks led the gains, with Varun Beverages rising 34%, followed by Trent at 26% and Nestle at 24%. Paint stocks and home and personal care stocks also showed strong performance during the month.
Only three stocks underperformed the Sensex in April: Lenskart gained 3%, Marico rose 5%, and Britannia increased 6%.
Over a 12-month period, the coverage underperformed the Sensex on average, with paint stocks experiencing sharp declines. Nykaa gained 36%, Titan rose 30%, and Nestle increased 22% over the year, while Vedant fell 45%, Jubilant declined 33%, Brainbees dropped 29%, and ITC decreased 26%.
Most covered stocks are trading above their 50-day moving averages, except for Dabur, GCPL, and Britannia, though a majority remain below their 200-day moving averages.
Compared to five-year trailing average valuation multiples, all stocks except Nestle and Marico are trading at discounts. Paint stocks, Trent, Page, Dabur, and Jubilant showed sharper de-rating.
In the quarter ending March 2026, foreign portfolio investors reduced shareholdings year-over-year and quarter-over-quarter across most covered stocks. Only Nykaa, Marico, and Avenue Supermarts saw notable increases in FPI ownership. Marico holds the highest FPI ownership at 24%, followed by Tata Consumer at 21% and Varun Beverages at 20%.