Perception of Investors on Growth Potential of Consumer Staples Companies: Evidence from Indian Stock Market

Abstract

Demand for Indian consumer goods is also among the most resilient and attractive sectors to invest in the stock market because of its defensive nature, financial performance and consistent demand. This article investigates the perception of investors towards growth possibilities in the consumer staples industry in the Indian stock market. This study aims to identify the factors that influence investors which are financial performance, the dividend policies, the strength of the brand, market growth and macroeconomic conditions. Data collection technique used in the study is primary and secondary data, and analysis of the data used descriptive and analytical analysis, individual investor medium in the study using face to face interview with structured questionnaires and institutional investor medium in the study using structured questionnaires. To evaluate the perception and preference of the investors, they use statistical data analysis techniques including percentage, mean score and correlation technique. Study results indicate that the companies in the consumer staples space are seen as a less risky investment with good prospects for long-term growth, given the urbanization trend, consumer wealth and higher rates of consumption along with the growth of organized retail. Plus, the sector is a safe investment option when investors are uncertain about the economy, and even the markets. The study helps in enhancing the knowledge of investor behaviour and gives insights to the policy makers, corporate managers and investors in designing effective investment and growth strategies in the Indian consumer staples industry.