Reuters Market Eye - Credit Suisse has initiated coverage of Indian consumer staple companies such as ITC with "outperform" ratings, saying price-to-earnings premiums are "high", but "far from the peak", while adding earnings growth are "steady."
"This is one of the few sectors with steady earnings growth, earnings visibility, and earnings upgrades, which should prevent a derating," Credit Suisse said in initiating coverage of the sector.
The NSE's fast moving consumer goods sector has surged 30 percent so far this year, versus a 17.5 percent gain in the broader NSE index.
Cigarette maker ITC has been among the strongest gainers in Indian stocks this year with about a 30 percent surge, having hit a record high on August 14.
Credit Suisse started ITC, Hindustan Unilever, Marico, Godrej Consumer Products and Emami
Marico shares rose 2.9 percent, while Emami shares gained 1.2 percent. ITC and Hindustan posted mild gains.
