India's discretionary, food and beverage stocks better pick over staples, says CLSA

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06/06/2025 09:04

** CLSA says it prefers discretionary and retail stocks in the Indian consumer segment over staples amid an ongoing slowdown in urban consumption

** Says urban lags rural but urban is where distribution is being challenged by e-commerce, especially quick commerce

** Adds, dependence on syndicated survey data like Nielsen could provide an incomplete picture as e-commerce data is not adequately represented

** Says, even within survey data discretionary and food & beverage are a better space due to lower penetration and improving affordability

** Among retailers, CLSA's top picks are DMart AVEU.NS and leading quick-commerce players Eternal ETEA.NS and Swiggy SWIG.NS

** Among discretionary stocks, CLSA's top pick is Titan TITN.NS

** On the day, ETEA up 2.5%, SWIG up 2.09%, DMart and TITN up ~1% amid broader market gains after the RBI cut its key repo rate by a larger-than-expected 50 bps .BO

 (Reporting by Ananta Agarwal in Bengaluru)

 ((Ananta.Agarwal@thomsonreuters.com))