Food prices in India have been rising, but they actually peaked in November. Amnish Aggarwal from Prabhuda Lilladher explains that even though people hoped that buying would go up during the festivals or because of good rain, that didn’t happen. Demand for everyday items is still low since many people are struggling with higher food prices.
Aggarwal points out that while people are spending more on things like jewelry, basic food items are still hard for many to afford. For example, edible oil prices increased towards the end of September, leading to higher prices at stores. Due to the inconsistent price changes, it’s hard to expect a big increase in the quantity of goods sold.
In terms of quick-service restaurants (QSRs) like Domino’s, which reported a strong boost in sales recently, the competition is still fierce. Many fast-food chains have managed to keep prices reasonable and attract customers again.
When we look at items people do enjoy, like jewelry and luxury cars, those sales are showing a good increase. This indicates that wealthier people are still spending, while those who rely on everyday staples are facing struggles.
As for future demand, it may take time for increased wages and decreased inflation to positively impact consumers. Companies in the fast-moving consumer goods (FMCG) sector may get some relief when prices balance out, likely by the end of the fourth quarter of this financial year. So, it might take another quarter for things to improve.
Regarding ITC Hotels, their stock price fell to around ₹450-₹460, which many people see as a good opportunity to buy, especially if prices stabilize without major tax changes.
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