El 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.