Quadruple blow: No Band-Aid for consumption stocks as inflation cuts deep

Festival flop, sluggish spending, job drought, and market correction sink consumption stocks

Higher inflation and shrinking consumer purchasing power appear to have taken a bite out of consumption-related stocks, with many seeing a decline in recent months. Analysts believe that the festival season, which peaked from October 28 to November 3, was also underwhelming.

 

According to Ambareesh Baliga, an independent market analyst, many investors have reduced both discretionary and non-discretionary spending over the past few months.

 

“There has been limited job creation, and inflation, too, has hit hard. As a result, consumers — both urban and rural — have likely scaled back their spending. This led to lower offtake for companies, which,