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Nomura's Top Picks Amid Rural Demand Risk: Marico, Tata Consumer, ITC Favored
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Moneycontrol•21-09-2026, 10:57
Nomura's Top Picks Amid Rural Demand Risk: Marico, Tata Consumer, ITC Favored
- •Nomura identifies Marico, Tata Consumer, and ITC as top picks in Consumer Staples, with Lenskart Solutions, Titan, and United Spirits preferred in Consumer Discretionary.
- •The brokerage remains cautious on rural demand due to a below-normal monsoon, El Niño, and potential product price increases from the West Asia conflict.
- •Southwest monsoon is 15% below normal, but key kharif crop regions like Central and Northwest India show less deficit, potentially cushioning overall impact.
- •Kharif sowing improved to a 1.5% year-on-year deficit by September 11, with high government buffer stocks of rice and wheat expected to help control inflation.
- •Reservoir levels are a concern, particularly in the Southern region, which could impact kharif crops and raise worries for rabi sowing; Nomura favors companies with strong urban presence and pricing power.
Key Questions Answered
Nomura's top picks in consumer staples include Marico, Tata Consumer, and ITC, while its preferred names in consumer discretionary are Lenskart Solutions, Titan, and United Spirits.
The southwest monsoon is around 15% below normal overall. However, key kharif-growing areas have experienced lower deficits, with rainfall down 6% in the Central region and 10% in the Northwest region, which helps cushion overall crop production impacts.
High government buffer stocks are expected to help keep inflation under check. As of August 16, government rice and wheat stocks stood at 3 times and 1.8 times the buffer norm, respectively.
