Oil prices, rural stress cloud outlook for consumer goods makers despite volume growth

“H2 would have a bit more cautious approach on the backs of the south-west monsoon ending about 13% below its long-period average, with El Niño and low reservoirs now threatening rabi sowing,” said Tanvi Kanchan, Associate Director, Anand Rathi Share & Stock Brokers. And the rural-urban growth gap could be reduced. “One can see rural still growing faster in H2, but the lead will narrow, urban may not slow much further. Lower crude, softer fuel costs and possible tax relief in the budget could support urban spending,” Kanchan said.