In this briefing:
1. India Consumer Discretionary: Growth Slowing on NBFC Liquidity Tightness, Demand Softness
- While many NBFCs pulled back on disbursements in 3QFY19, the sharpest declines were in SME/MSME, LAP and Loan Against Shares (LAS) segments
- The pullback in SME/MSME financing has reduced working capital financing in some supply chains. This has impacted stocking in some discretionary items.
- A number of players alluded to weakness in discretionary consumption post Diwali owing to the NBFC liquidity squeeze
- With supply chains selectively impacted by liquidity tightness and weakness in demand, consumer discretionary players could not pass on input cost increases during the quarter
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