New Delhi, Oct. 16 -- FMCG and retail stocks are under pressure as inflation concerns and weak monsoons threaten India's consumption narrative. Nestle India shares plunged 8% on Thursday amid growing worries of cost inflation.

However, Manoj Menon, head of research and consumer analyst at ICICI Securities is of the view that diversified and premium-focused businesses such as Nestle could benefit from steady urban demand. In contrast, Dabur India and Emami are exposed to the risk of weak rural incomes.

Retail giant Avenue Supermarts (DMart) is also struggling with margin woes and intense competition from quick commerce (QC) companies. Rather than attempting to replicate 10-minute delivery models, Menon said that DMart's strongest defense...