Indian markets were bleeding red on Monday amid fears of an incoming recession in the US.

What Happened: Benchmark index Sensex opened more than 2% lower at 78,588.19, while the broader Nifty 50 was down 1.87% to 24,254.25.

The fast-moving consumer goods (FMCG) sector, however, was seen bucking the trend following the same course as on the Budget day last month. Among the Nifty 50, Hindustan Unilever Limited (HUL), Tata Consumer, Nestle India and Britannia were all in the green. However, ITC shares declined in morning trade.

"When valuations are high, unexpected triggers will cause sharp cuts," said V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services. "Fairly valued large-caps and defensives like FMCG and Pharma can be bought once the market stabilises," he added.

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Kranthi Bhatini from WealthMills Securities said that FMCG stocks are largely insulated from the global trends. Their trajectory largely depends on domestic factors, he added.

The earnings season is drawing to a close and most FMCG firms have reported their earnings. Now, going forward, analysts hold an overall positive outlook for the sector.

"Companies are expected to continue leveraging price hikes and cost efficiencies to manage margins despite persistent raw material cost volatility. Innovation in product offerings, premiumisation, and expanding digital channels will be critical growth drivers," Ajit Mishra, SVP, Research at Religare Broking told Benzinga in a recent interview.

Price Action: Shares of HUL were up 1.35% at ₹2,728.95. Tata Consumer was trading 0.67% higher at ₹1,201.60. Nestle India gained 0.70% to trade at ₹2,512.65. Britannia was up 0.18% to ₹5,730.45. ITC lost 0.50% to trade at ₹486.65 on Monday morning.

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