We downgrade rating on DABUR, BRITANNIA and EMAMI from ADD to REDUCE and UNSP from BUY to ADD. We also initiate coverage on NESTLE and GCPL with REDUCE rating. Within our existing coverage, we remain positive on ITC, UNSP, JUBI, COLGATE and RADICO. FMCG sector witnessed growth slowdown in FY20, in-line with nominal GDP moderation. Sector posted 5% revenue growth in 9MFY20 vs. 12% CAGR over the last 10 years. Covid-19 will further delay the macro recovery which was earlier expected in 1HFY21. In the current slowdown, while FMCG cos will be better than other sectors, however, their growth trajectory will also taper down. Staples consumption will see moderation in FY21 particularly with further weakness in income for rural and urban poor households. We believe street is not factoring volume hit and down trading risk in this sector and cos which are more resilient to near term disruption have already seen re-rating. Thereby, risk-reward has become unattractive for most stocks from medium term perspective. We remain selective in sector as extremely stretched valuations keep us on sidelines, esp. on large caps