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Nomura Names Marico, Tata Consumer, ITC Top Picks Amid Rural Demand Concerns
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Moneycontrol•01-10-2026, 12:35
Nomura Names Marico, Tata Consumer, ITC Top Picks Amid Rural Demand Concerns
- •Nomura retains Marico, Tata Consumer, and ITC as top picks in consumer staples, with Lenskart Solutions favored in consumer discretionary.
- •The 2026 monsoon season ended with rainfall 12.5% below normal, exceeding the India Meteorological Department's 10% deficit forecast.
- •Kharif sowing declined 1.5% year-on-year, with rice and maize sowing down 3.8% and 2.6% respectively.
- •Nomura warns of multiple headwinds for rural demand, including below-normal monsoon, El Niño, and product price increases due to the West-Asia conflict.
- •The brokerage prefers companies with higher urban saliency, pricing power, strong brands, resilient portfolios, and better execution, especially given potential warmer winters impacting winter portfolios.
Key Questions Answered
Nomura has retained Marico, Tata Consumer Products, and ITC as its top picks in the consumer staples segment.
According to Nomura's September 30 report, the 2026 monsoon season concluded with rainfall tracking roughly 12.5% below normal levels.
Nomura warns that El Niño conditions could lead to warmer winters, potentially moderating growth and margins for companies with heavy exposure to winter-specific portfolios.
