Analysis-In India's sizzling stock market, consumer stocks rise 18% but are laggards

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Halifax police investigating Monday morning Dartmouth death as suspicious | SaltWire #newsupdateMUMBAI - The yawning divide between the super-rich and middle-class in India's booming economy is set to persist, if the"underperformance" of consumer stocks in the raging stock market is anything to go by.

The premium segment, comprising companies that sell cars, high-end electronics, expensive watches and jewellery, is seeing brisk business and soaring share prices. Tata group-owned Titan Company has seen its share price rise 44.3% over the past 12 months while luxury watch retailer Ethos has gained 162%.

Consumption in segments that cater to groups where income growth is weak has been tepid, said Sonam Udasi, senior fund manager at Tata Asset Management, which is underweight FMCG stocks in its India Consumer Fund. Rising prices for staples such as vegetables and the popular 'surti kolam' rice, means he had to cut other spending.

In an index of consumer durables, 10 of the 15 stocks, including refrigerator maker Voltas and popular washing machine manufacturer Whirlpool, have underperformed benchmark indices in the current financial year.

 

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