The downturn in the India growth story spares no one, not even the Sensex’s top performers. Consumer companies have been stock market darlings for close to five years. During this time, the BSE FMCG Index has risen by 227 percent to 6,948. When nothing else was performing, consumer (and pharma) stocks along with private banks seemed to be the best bets. As a result, valuations have sky-rocketed; the index trades at an earnings multiple of 41. Compare this to 14 for the Sensex and the disparity is stark. So now, as FMCG stocks get hit too, it is a grim affirmation of the slowdown.
(This story appears in the 23 August, 2013 issue of Forbes India. To visit our Archives, click here.)