Consumer momentum unlikely to derail as IT firms rationalise salary payouts

In the last six months, the Nifty Consumption index has rallied 12 per cent as compared to the 3 per cent surge in the Nifty50 index, data showed

Consumption-related stocks are unlikely to take a big knock as companies, especially the ones in the information technology (IT) sector, look to rationalise costs over the next few quarters, said analysts, who believe the delay in variable pay payment and bonuses will largely be restricted to the IT sector.

"There has been a disproportionate rise in the employee cost for IT companies that I have not seen in the last 20 years," said G Chokkalingam, founder and chief investment officer at Equinomics Research. The industry, he