Consumption trends in India’s equity markets continue to show a mixed but gradually improving picture, with investors increasingly becoming selective across consumer-facing sectors. While quick service restaurants (QSR) continue to face pressure, premium retail and select FMCG-linked businesses are showing stronger resilience and visibility.
Speaking to ET Now, market expert Rahul Shah from MOFSL said that Page Industries stands out as one of the strongest recovery stories within the consumer space. He highlighted improving growth momentum and positive management commentary, pointing out that “strong performance, upbeat on the sales part, 11% quarter-on-quarter growth, and we believe that after a long time we have seen this kind of growth coming back in Page.” He also noted that earnings estimates have been revised upward and that the company’s product expansion through digital platforms and retail channels is supporting visibility. According to him, Page Industries offers rare double-digit growth visibility in a volatile market and remains reasonably valued given its long-term growth outlook.
On other consumer names such as Nykaa and Honasa, Shah adopted a more cautious stance. He said Nykaa was largely in line with expectations and while the numbers were stable, “I feel that there is limited upside on the stock,” indicating that major re-rating potential may be capped in the near term. Honasa too was seen as largely aligned with expectations without strong immediate triggers for upside.
On broader consumption strategy, Shah suggested a balanced portfolio approach combining select FMCG names with premium consumption plays. He emphasized Marico as a consistent performer in the FMCG space, stating that it continues to stand out due to market share strength, product launches, and earnings sustainability. Along with Page Industries, he sees FMCG leaders like Marico as key anchors for playing the consumption theme in the current market environment.
In the insurance space, Shah reiterated the importance of maintaining sector allocation in portfolios. While acknowledging strong numbers from LIC, including growth in value of new business margins and annual premium equivalent, he expressed a preference for Max Financial Services within the space. He highlighted strong margins, robust growth, and expanding distribution channels beyond banks, noting that “Max remains our preferred bet and we see 20% upside in it.” At the same time, he indicated that LIC could act as a rerating candidate given improving sentiment and market positioning.
On the pharma sector, Shah observed that the space continues to outperform broader markets, supported by global uncertainty and defensive positioning. He noted that the Nifty Pharma index is at a 52-week high and highlighted strong performance from Sun Pharma and Aurobindo Pharma. While acknowledging that Cipla and Dr Reddy’s delivered weaker results, he maintained a constructive outlook on large-cap pharma, suggesting that Sun Pharma remains a key stock to watch, especially after its earnings, while Aurobindo Pharma also looks attractive after meeting street expectations.
Overall, the market narrative continues to shift towards selective consumption recovery, steady pharma strength, and insurance-driven defensive growth. With earnings visibility diverging across companies, investors are increasingly focusing on stock-specific opportunities rather than broad sector bets.
