India Festive Demand Outlook: Why Auto And Consumer Stocks Face Pressure

Festive demand may remain muted as high base effects, rising input costs and valuation concerns weigh on auto and consumer durable stocks. Dharmesh Kant, Head of Equity Research, Chola Securities, says automobile growth could moderate over the next few months, while companies such as Maruti may face margin pressure after recent price hikes. Consumer durable players including Voltas and Whirlpool are also dealing with higher input costs. However, LG Electronics stands out as a preferred pick, supported by solid recent numbers, relatively attractive valuations and its broader consumer appliance business. Investors may need to remain selective as previous market winners face tougher growth comparisons.