Emkay Global Financial Services believes that growth in FMCG sector seems to be stabilising for the past few quarters, after broad-based moderation witnessed in growth since FY13.

''Few indicators are flashing Green - Sharp fall in CPI, Uptick in consumer confidence indices, Auto & Durables reported strong growth in last few months and Corporate comments & dealer checks signalling revival in pockets of Tier I cities,'' it said.

''However, waning stimulus, deceleration in farm & non-farm income and moderation in MSP growth is worrying for rural India. Reading into the above signals, we feel that growth deceleration seems to have bottomed out. Moreover, we feel that any revival from hereon will be led by urban India,'' said Emkay.

''We continue to like price maker categories - Oral Care, Malted Foods, Infant Nutrition, Noodles, Cigarettes, etc. Among under-penetrated categories & urban revival plays, we like Digestives & OTC, Female Hygiene, Hair Colours, Biscuits, Home insecticide & Other Foods. We assign least preference to price taker categories-Soaps, Detergents & Hair oils - given competitive intensity and high penetration levels,'' it opined.

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