UBS Sees Consumption Rebound in FY26 on Tax Cuts, Income Boost; Upgrades HUL & ITC

📈 Consumer Sector Set for a Rebound in FY26: UBS

🧾 Earnings Recovery Expected: UBS projects a 13% overall earnings growth for the consumer sector in FY26 after a slow FY25.
💰 Boost from Lower Taxes & Pay Hike: Expected income stimulus from tax cuts and the 8th Pay Commission rollout over the next 3 years could drive stronger demand across categories.
📉 Valuations More Attractive: FMCG sector valuations have corrected by ~35% since October, making it more appealing to investors.
🛡️ Defensive Investment Bet: With ongoing global uncertainties, FMCG offers a safe-haven option, ideal for low-risk portfolios.
🔁 Upside if Risk Appetite Returns: If market sentiment improves, the sector could gain further momentum.