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El Nino to Hit Rural Purchasing Power and Key Sectors, Warns Expert
M
Moneycontrol•15-10-2026, 06:01
El Nino to Hit Rural Purchasing Power and Key Sectors, Warns Expert
- •Vikas Gupta of OmniScience Capital warns that El Nino could affect agricultural production and weaken rural purchasing power.
- •Sectors heavily focused on rural areas, such as FMCG and automotive, are expected to face headwinds in FY27 and FY28.
- •The expert remains highly bullish on the financial services sector, favoring public sector banks, private lenders, and housing finance companies.
- •FPI outflows are primarily driven by rotational shifts toward undervalued semiconductor and AI stocks in Taiwan and Korea rather than taxes.
Key Questions Answered
Agricultural production is likely to be affected by El Nino, which could weaken the purchasing power of the rural population and weigh on rural-focused sectors such as FMCG and automotive.
Analysts are overweight on public sector banks, private banks, housing finance companies, infrastructure NBFCs, and select consumer finance companies.
Outflows were mainly driven by a rotation out of fairly or overvalued Indian stocks into significantly undervalued handful of Taiwan and Korea semiconductor and AI stocks.
