FPIs stay focussed on India’s consumption theme despite market volatility
FPIs heavily invest in India's consumption sectors like auto, FMCG, and telecom. Auto sector leads with 7% weight due to premiumization growth. Stable rural MPCE CAGR at 9.2% indicates long-term consumption trends. The assets under management (AUM) of the consumption stocks in the FPI portfolio rose by 55% to $176 billion over the past 12 months. Key Points
Economic TimesSandip Sabharwal explains why post Budget it makes sense to pick up consumer stocks
Sandip Sabharwal believes that the reduction in fiscal deficit will lead to lower interest rates, reduced inflation, and increased volume growth and consumption growth. This will create an opportunity to buy consumer stocks. The previous high inflation and employment issues impacted consumption, but with lower interest rates and entrenched inflation, volume growth on the consumption side is expected to come back. Going into July, there may be relief on income tax rates, but there are also expectations of tweaks on capital goods and inheritance tax. Key Points
Economic TimesIndian consumers to be primary divers for domestic and global economy: Barclays
“Consumption already forms a bigger part of the Indian economy (58%) than in most large consumer-led economies. This, coupled with an expected surge in India's population, suggests the country's consumption is primed for world-beating growth,” Rahul Bajoria, MD & Head of EM Asia (ex-China) Economics, Barclays, said in a report released Wednesday. Key Points
Economic TimesWhere to find value or growth or both in the next two or three years? Sunil Subramaniam explains
“As per capita income grows, we are already seeing the beginning of premiumisation in automotives, in housing. We are seeing high-end properties, high-end cars selling much faster. We believe that that is a segment which is fully not tapped yet.” Key Points
Economic TimesWon't spend on home but will travel: How India's consumption story is unfolding
Travel, financial services, recreation, and insurance, among others, the prosperity-driven categories have experienced an acceleration. “Indias long-term consumption trends are gradually reflecting increased prosperity as the consumer behavior evolves towards higher categories,'' says Mrigank Gutgutia, Partner, Redseer Strategy Consultants. Key Points
Economic Times
Time to consider pharma, take a long-term look at consumption: Anshul Saigal
There is a very stark difference in how consumption patterns are showing up. We are seeing luxury goods and slightly expensive goods and services seeing a significant uptrend while things like glucose biscuits etc, which are at the slightly lower end in category, are seeing some weakness., says Anshul Saigal Key Points
Economic TimesIndia’s petroleum use at record high in FY23 on surging fuel demand
For the year ended March, consumption of major fuels--diesel, petrol, and liquefied petroleum gas (LPG)--broke all previous records. Petroleum product consumption is considered a measure for crude oil demand, alongside being a proxy for tracking industrial activity and domestic consumption trends. Key Points
The Indian ExpressHigh prices dent spending on daily essential products, says new Kantar study
Kantar said while there was a slight volume growth of fast moving consumer goods (FMCG) sales at 0.54% in January as compared to the previous year, it was purely driven by population growth of nearly 2.7%. In fact, FMCG consumption dropped by 2.9 kg in the year. FMCG volume is a product of population and consumption. Key Points
Economic TimesWhat clamour for Coldplay tickets says about India's economy
Coldplay's 2025 Mumbai concert tickets sold out in 30 minutes, leading to high resale prices. This reflects India's rising disposable incomes and a trend of premium consumption. The middle class and affluent households are growing, with a shift towards luxury goods across various sectors, even as rural markets face stress. Key Points
Economic TimesKeeping some cash; taking a barbell approach to portfolio: Ganeshram Jayaraman
Ganeshram Jayaraman of Avendus Spark discusses the portfolio construct with a focus on defensives and industrials. He is cautious on the macro outlook, expects volume growth to be the key driver, and highlights the evolving consumption patterns in the rural economy. PSU banks and sectors dependent on government capex may face challenges. Key Points
Economic Times
Shibani Sircar Kurian on 4 sectors one can be positive about now
Within banks, if you look at the way the entire segment has played out, the larger private banks, despite the fact that they have seen improvement in terms of profitability, have not seen multiples re-rate. Therefore, their multiples remain at long-term average levels, despite seeing significant improvement over the last couple of years where return ratios are concerned. Key Points
Economic TimesWhy do liquor and tobacco stocks have a divergent trend? Anand Tandon answers
ITC's profitability in FMCG and hotels should be generating profits, and the company should deliver on their promise of separating these businesses and floating them separately to unlock value. The distribution restrains and give-and-take happening between United Spirits and the government to constrain the margins is the biggest challenge. Rural economy is expected to boost consumption and most staples should do well. It is time to focus on two-wheelers such as Bajaj, who has done well, and Hero, who still needs to catch up. Key Points
Economic TimesHousehold consumption to revive in FY25, growth at 6.3%: Standard Chartered
India needs household consumption to pick up for GDP growth of 6% or higher in the coming fiscal. Standard Chartered revised its FY25 forecast to 6.3% from 6%, projecting muted inflation and higher food spending to drive growth. The report expects a revival in consumption to offset the impact of lower commodity prices, slower global growth, and moderation in government capex. Key Points
Economic TimesSky-high prices burn Indians’ pockets, drag savings to 30-year low amid K-shaped recovery
This broad-based moderation in consumption in recent quarters, coupled with lower household savings, is evidence of a K-shaped economic recovery in India, as inflation continues its uptick despite the Reserve Bank of Indias policy rate cuts. Indias inflation has averaged 7.2 per cent YoY in HF1Y23, following 5.8 per cent in the preceding two years. Key Points
Economic TimesChatGPT consumes 17,000 times more electricity than an average US household daily
Artificial Intelligence (AI) is becoming a huge electricity guzzler, raising concerns about its environmental impact. OpenAI's popular generative AI - ChatGPT - alone is estimated to consume over half a million kilowatt-hours daily in order for it to respond to about 200 million user requests daily, as per a report. Key Points
India Today
Oil demand growth in India to taper in 2024 after bumper years
Consumption will expand 150,000 barrels a day in 2024, down from about 290,000 barrels a day seen from 2021 to 2023, according to Rystad Energy Head of Oil Trading Mukesh Sahdev. The drop will return growth near the pace seen from 2011 to 2019, he said. The International Energy Agency, meanwhile, sees growth halving to 100,000 barrels a day, as per its November report. Key Points
Economic TimesIndia’s inflation data overlooks full impact of rising prices. ‘Average Indian’ is outdated
Food has an outsized weightage in Consumer Price Index, but education and health too little. This is because CPI is based on spending patterns of 'average Indian' from 12 years ago. Key Points
ThePrintGovt rolls out mandatory quality norms for smart meters, welding rods
Smart meter is an electronic device that records information such as consumption of electric energy, voltage levels, current and power factor. It communicates the information to the consumer for greater clarity of consumption behaviour and electricity suppliers for system monitoring and customer billing. Key Points
Economic TimesWorld Bank cuts India’s GDP growth forecast to 6.3% in FY24
India’s GDP is expected to moderate to 6.3%, as against earlier estimate of 6.6%, due to moderation in consumption in FY24, the World Bank said in a report. Key Points
The HinduIncomes lag inflation post Covid; low-end demand hit
Latest CPI data showed consumer price inflation that averaged 3.7 percent in FY '19 has scaled 6.7 percent in FY23 driven by a sharp rise in food and beverages inflation which accounts for a big chunk of the average Indians consumption basket. Key Points
Economic Times
Delay in rolling out 5G may hurt Vodafone Idea badly
The absence of 5G service from Vodafone Idea (Vi) could result in the loss of high-paying customers in the coming quarters, experts have warned. While Vi's per-capita data consumption has remained flat at 15.1 GB, Bharti Airtel's has increased to 20.3 GB due to its aggressive push for 5G expansion. Falling behind on 5G rollout could lead to a slowdown in Vi's average revenue per user (ARPU) growth and increased churn. Key Points
Economic TimesMukul Kochhar on main investment theme for next 5 years & 2 things to avoid this year
Investec Capital Services' Mukul Kochhar predicts that the private capex cycle will drive job creation, savings accumulation, and premiumisation for the next five to six years. The investment cycle will boost earnings growth and contribute to supporting manufacturing investments, allowing discretionary consumption in the Indian market to grow as per capita GDP increases. Investec recommends portfolios that avoid exceptionally high multiples and over-anticipated stocks. Key Points
Economic TimesGet ready for a range-bound rather than one-way market: Kunj Bansal
“High-end consumption will probably continue to do well. Lower-end consumption is something that we have to watch out for if the festival season lends some kind of help. Till then it will remain on a wait and watch mode. Of course, the other thing that we keep discussing is the whole valuation challenge of the Indian market.” Key Points
Economic TimesChina's third-quarter economic growth slows to 4.9%: Official data
International Business News: China's economic growth in the third quarter slowed to 4.9 percent due to a property crisis impacting consumption and business activity. The figure ex Key Points
Times Of IndiaSalil Desai on how crazy, rich Indians are changing the atlas of consumption
“In a lot of segments, we will see clear divergence into what would earlier have been thought as essential spending and more luxury and high-ticket spending. We are reorienting our portfolios based on some of these themes, which is part of a broader theme that we are playing with called WESCO.” Key Points
Economic Times
India's power consumption grows 9.4 pc to 984.39 billion units in April-October
India's power consumption in the April-October period grew 9.4% compared to last year, reaching around 984.39 billion units. This is attributed to imp Key Points
Times Of IndiaIndia’s mobile data consumption grows four times in past 5 years
Mobile data consumption per individual in the country has grown four times in the past five years, and has been surging further. From 5 GB per individual... Key Points
The Tribune IndiaLooking for bottom-up ideas in these 4 sectors: Manish Jain
Manish Jain of Centrum PMS, discusses the investment framework focused on quality, risk, and reward for sustained long-term wealth creation. The strategy is bottom-up driven, emphasizing risk versus reward and valuations versus growth. The portfolio is diversified across sectors such as auto, chemicals, NBFCs, and affordable housing. Micro-cap names and a listed vineyard company are part of the portfolio, capitalizing on the lifestyle play. The focus is on leveraging the India growth story. Key Points
Economic TimesInterim Budget may see measures to boost consumption demand, push agri economy
According to experts, there is an urgency to address issues concerning slack consumption demand in economy. Finance Minister Nirmala Sitharaman is likely to... Key Points
The Tribune IndiaParties' Lok Sabha polls spend may top Rs 1 lakh crore, spur growth in Q4
Political parties' spending for the Indian general election could exceed ₹1 lakh crore, potentially increasing consumption and boosting growth by 0.2-0.3 percentage points in the last quarter of FY24. Candidates are expected to accelerate their spending, increasing travel for campaigns and publicity material. The increase in consumption is expected to be more pronounced for rural households and lower-income groups. Key Points
Economic Times
Inside the 2024 shopping bag: Where is the Indian consumer headed?
Indian Consumers: While the affluent segment gravitated toward luxury apartments, high-end cars, and premium consumer goods, lower-income brackets grappled with inflation and rural hardships. Sales surged for luxury items, bustling malls and restaurants, alongside a spike in hotel room rates due to heightened demand. Conversely, FMCG companies faced stagnation in selling everyday items like biscuits, soaps, shampoos, and perfumes, yearning for increased consumption rates. Key Points
Economic TimesWhy brewers aren't worried about Wegovy users drinking less beer
Global brewers AB InBev (ABI.BR) and Carlsberg (CARLb.CO) this week played down concerns among some investors that demand for weight-loss drugs may lead to a sharp drop in beer drinking. Key Points
ReutersGovernment data: Peak power demand touches new high
Power consumption in March 2023 was recorded at 126.82 billion units (BU), down from 128.47 BU in the same month the previous year. Key Points
FinancialexpressThe Rhetoric and the Reality
New jobs are not being created in urban areas. The all India unemployment rate is 7.4 per cent (CMIE). Key Points
The Indian ExpressKnow how to reduce AC bills during summer
With the onset of summer, AC will become a necessity to survive the scorching heat. However, AC’s comfort comes at the cost of high AC bills and energy consumption. Follow these tricks to cut-down your AC bills Key Points
mint
Power consumption grows 9.5 pc to 1,503 billion units in 2022-23: Govt data
Power consumption grew 9.5 per cent to 1,503.65 billion units year-on-year in 2022-23, mainly due to higher demand amid a rise in economic activities, showed government data. Power consumption was 1,374.02 billion units (BU) in 2021-22, according to power supply data from the Central Electricity Authority (CEA). Key Points
Economic TimesIndia's power consumption dips marginally by 2.3% to 119.07 billion units in December
India Business News: Power consumption in December 2023 dipped 2.3% to 119.07 BU, the first monthly decline in 8 months, due to lower demand for heating equipment. Earlier Key Points
Times Of IndiaIndia's power consumption grows by 8.4 pc to 139 billion units in July
India's power consumption rose by 8.4% to 139 billion units in July 2023 compared to the same month last year, according to the government data. The peak power demand met during the month was recorded at 208.82 GW, reflecting a rise from the 190.35 GW recorded in July 2022, and the 200.53 GW registered in July 2021. The country's electricity demand is estimated to touch 229 GW during the summer season, but it was impacted earlier this year due to unseasonal rains, which reduced the use of cooling appliances. Key Points
Economic TimesIndian rural market's still sluggish, could improve in H2: Colgate executive
Real incomes have come down and the general level of unemployment in rural India is very high. The impact of inflation on them is very high, Mukul Deoras, president, Asia Pacific at Colgate-Palmolive, said at the Evercore ISI annual consumer and retail conference. Key Points
Economic TimesRural consumer goods consumption back to growth in March quarter, says report
The increase in product prices slowed to 6.9% from January to March, from 7.9% in the previous quarter, helping consumption in rural India increase 0.3%, after six quarters of decline. Key Points
Financialexpress
Express View on delay of consumption Expenditure Surveys, census: Let data flow
Accurate and timely data forms the bedrock of policy making. Measures need to be taken to strengthen statistical system, safeguard its independence. Key Points
The Indian ExpressPower consumption grows 9.5 per cent to 1,503 billion units in 2022-23: Govt data
Power consumption was 1,374.02 billion units (BU) in 2021-22, according to power supply data from the Central Electricity Authority (CEA). Key Points
FinancialexpressIndia's power consumption grows nearly 22% to 138.94 billion units in October
The peak power demand met -- the highest supply in a day -- rose to 221.62 GW in October. The peak power supply stood at 186.90 GW in October 2022 and 174.44 GW in October 2021 Key Points
FirstpostPower consumption grows nearly 22 pc to 138.94 billion units in October
In October, the country's power consumption increased by nearly 22%, reaching 138.94 billion units, driven by festive celebrations and increased economic activity. The peak power demand met also saw a significant rise, reaching 221.62 GW. Despite earlier projections of 229 GW, this level wasn't achieved due to unseasonal rain. Key Points
Economic TimesEl Nino impact! Nuvama ‘overweight’ on FMCG, 2Ws, IT; top 3 picks for model portfolio
A report by Nuvama suggests that consumption stocks in the FMCG segment, two wheelers, and cement sectors are likely to benefit from El Nino, while agricultural businesses could suffer. The report highlights how the poor monsoon and weak farm output caused by El Nino in FY 2015-16 led to a slowdown in rural wages and consumption. Key Points
Economic Times
Gov't spending to drive India growth this fiscal year, economists say: Reuters poll
Over 50% of economists in a recent Reuters poll said government spending would be the primary driver, with investment playing a pivotal role. However, there are doubts over whether private sector investment will increase in order to add to the government's capex push. Despite predictions, there may be downgrades on the back of the challenging global economic outlook. Key Points
Economic TimesIndians prioritise survival, put vanity on the backburner
Even as global rating firms remain gung-ho on the positive prospects for the Indian economy, the term 'mehengai' finds increasing space in the Indian household discourse. Economists continue to highlight some of the well-documented strides made by the Indian economy in recent years, especially in comparison to other major economies. However, rising prices continue to be a spot of bother in India. Key Points
Economic TimesNatural gas consumption rises 7 per cent in first half
Gas consumption rose 5% in 2019-20 before falling by a similar percentage point the subsequent year as the pandemic curtailed demand. It expanded 5% in 2021-22, boosted by the post-pandemic recovery but fell by a similar volume again in the succeeding year, weighed down by record high prices in the international markets. Key Points
Economic TimesWhat's in new India's consumption basket: Airpods, playstations, online streaming & more
The government's Household consumption Expenditure Survey (HCES) collected data on items like Playstations, AirPods, and power banks. It also included information on the quantity, value, acquisition, repair, and maintenance of these items. The survey provided insights into changing entertainment patterns and tracked monthly expenditures on sanitisers. Key Points
Economic TimesAre Bharat & India closer? Yes, but…
India News: Find out the key findings of the All India Household consumption Expenditure Survey and its implications for the Indian economy. Discover the changing consumption patterns, rural-urban divide, and the impact on GDP and CPI. Are Bharat and India really getting closer? Read more to find out. Key Points
Times Of India
Latest NSSO consumer survey indicates poverty down to 5 per cent: NITI Aayog CEO
The latest consumer expenditure survey reveals that poverty in India has decreased to below five per cent. Per capita monthly household expenditure has doubled, indicating increased prosperity in rural and urban areas. The survey also shows a decrease in consumption of cereals and food, with people spending more on milk, fruits, vegetables, and processed food. Key Points
Economic TimesNew consumption survey to track online expenses in bid to capture real economic picture
India's Household consumption Expenditure Survey (HCES) will now include questions on people's subscription spending on OTT platforms, online shopping habits and ownership of electric vehicles and mobile accessories such as smartwatches, said unnamed insiders. The updated survey also seeks to include the latest consumer trends in order to reflect changes in the Indian economy. Key Points
Economic TimesFive key charts to watch in global commodity markets this week
Gasoline consumption in the US continues to increase as the summer driving season gets underway. Elsewhere, stockpiles of thermal coal at Chinese ports are on the rise, while surging copper inventories signal a softening market. Here are five charts to consider in global commodities this week. Key Points
mintTake some money off auto; invest in IT, realty, consumption & selective banks: Sanjiv Bhasin
“Bank Nifty, which had lost momentum, is now in leadership. Obviously buy the frontliners which for the largecaps are HDFC, ICICI and Axis. But I would single out Kotak to be the biggest outperformer here. As for small caps, I am very optimistic on Bandhan Bank from that Rs 250 level. It has hit Rs 235, 240. But do a SIP in Bandhan.” Key Points
Economic TimesSunil Subramaniam on 2 sectors to bet on as 2024 elections loom
“A broad-based rally in largecaps – not market cap broad-based, but sectorally broad-based within the largecap space – would be the best strategy for investors to adopt. If they want to go beyond largecap funds, then flexi-cap funds represent a good option because they normally have 15-20% or maybe up to 30% in the broader market.” Key Points
Economic Times
FMCG growth up in Sep qtr, signs of rural recovery seen
Rural markets reported a 6.4% jump in quarterly volumes after reporting a 3.6% decline in the year earlier. Fast-moving consumer goods (FMCG) volumes in urban markets increased 10.2% from a year earlier. Key Points
mintTwo fuels that power the global economy flash red in Europe
The continents demand is still critically important even in a world where traders are intently focused on the potential for supply disruptions emanating from war in the Middle East. The expected consumption drop in the two fuel types this year is well over half a million barrels-a-day versus pre-pandemic levels — not far off a Belgiums worth of overall oil usage. Key Points
Economic TimesGoods demand fades, services holds out hope
Overall consumer demand is also expected to come under pressure from tighter monetary conditions and lesser pull from rural India. However, high-end consumption is expected to provide some support. Inequality is playing out. Wherever there has been recovery, it's either been heavily biased towards the more affluent and upper-middle tiers or where it has been mass-based, there has been downtrading, said Abheek Barua, chief economist, HDFC Bank. Key Points
Economic TimesView: India’s growth has Chinese characteristics
India, once touting its exceptionalism, is facing economic challenges resembling China's model. With private consumption crawling at 4.4%, sluggishness is evident, and unsecured personal loans surge. Prime Minister Modi's focus on capital stock is reminiscent of China's investment-heavy approach. However, doubts persist about trickle-down effects benefiting the surplus labor. As India's GDP lags pre-pandemic levels, the job market narrows, impacting incomes for a significant portion of the population. The top 20% may thrive, but broad-based consumption growth is essential for sustained economic success. Key Points
Economic TimesNot big triggers, just global stability enough for India to outperform: Dinshaw Irani
“We are still seeing flows coming in, I do not think there is a reversal in the flows.We do not need big triggers in the market; we just need the world to stabilise. If that happens, that is enough for India to continue their outperformance.” Key Points
Economic Times
consumption of natural gas falls 12.4% in May
Total gas consumption in May was 5,066 million metric standard cubic meters (mmscm), according to oil ministry data. consumption during the April-May period, the first two months of the fiscal year, was 3.4% lower than the same period last year. Key Points
Economic Times