Nomura has released its latest view on India’s consumer sector, suggesting a gradual recovery in rural demand and a stable urban outlook, albeit with some softness at the bottom-end of the consumption pyramid.
The brokerage noted that staples sales have edged up marginally, and while margins are currently under pressure, they are expected to ease going forward. In discretionary categories, demand remained soft-to-stable, with jewellery being a notable outlier showing relative strength.
Nomura anticipates that rural volume growth will improve steadily, driven by favourable base effects and broader macro recovery. However, weakness was observed in the lower-income urban segments, which continues to be a concern for mass-market consumption.
On the inflation front, Nomura expects it to remain at moderate levels, which could provide relief for both consumers and corporates over the coming quarters.
Disclaimer: This article is based on a brokerage report and is intended solely for informational purposes. Business Upturn does not offer investment advice or stock recommendations.
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