Safe Haven.
First of all, before starting out, I would like to categorically state that this article has little to do with the eponymous romantic novel by Nicholas Sparks or the resultant film. The above image is merely a red herring. This blog, after all, still revolves around the corporate world and it doesn’t cater to the domain of romance. Not yet anyway. The scene over at Dalal Street, however, is anything but romantic. The fatal emotions of fear and panic have gripped the Indian bourses and with the Indian Rupee crashing through all its support levels, the markets have taken a nosedive. Moreover, a sub 4.5% GDP growth rate, a ballooning current account deficit and structural downgrades by global rating agencies such as Fitch and Moody’s have only exacerbated the situation. With foreign institutional investors (FIIs) pulling out funds from India, virtually every stock out there is in descent mode. In such a scenario, defensive sectors such as FMCG (fast moving consumer goods),